AAVE jumped 13% after Aave Labs proposed sending all revenue to the DAO and Grayscale filed an S-1 for an AAVE spot ETF.
Aave (AAVE) price has risen nearly 13% over the past 24 hours as new governance proposals and ETF developments boosted market interest. The move came while Aave Labs introduced a major economic update for the protocol and as traders reacted to fresh regulatory filings connected to the asset.
The token traded near $130 during the session after a strong daily candle signaled renewed buying interest. Data showed increased capital inflows as technical indicators shifted toward early signs of recovery. The broader market also monitored updates from both governance discussions and new institutional filings.
According to a press release, Aave Labs, which was cleared of any wrongdoing by the SEC in December, has announced a new framework designed to centralize all revenue under the control of the Aave DAO. The proposal, named the “Aave Will Win Framework,” sets out a structure that directs 100% of revenue from Aave-branded products to the DAO treasury.
Founder Stani Kulechov said the model expands the DAO’s revenue sources beyond the fees created under AIP-1. In a post, he wrote that the plan “materially increases the DAO’s capacity to grow its treasury.” He added that the structure would allow the DAO to fund expansion, increase buybacks, and pursue additional opportunities.
The framework also confirms Aave V4 as the protocol’s core foundation. The upgrade introduces support for real-world assets, a unified liquidity system, and tools aimed at institutional users. Kulechov said this structure will allow Aave to serve as a key layer for on-chain credit as more financial platforms move into decentralized markets.
The proposal is currently in the temperature check stage. Early feedback from forum delegates shows broad support for the initiative. Community members said the update could improve long-term alignment by giving the DAO direct control over economic flows across the ecosystem.
A second development added further interest to AAVE trading. Grayscale Investments submitted an S-1 filing to the U.S. Securities and Exchange Commission for an AAVE spot ETF. The filing came after the firm previously launched spot Bitcoin and Ethereum ETFs in the US.
The proposed fund would give traditional investors access to AAVE without using DeFi platforms. The filing follows growing discussion around Aave’s move toward greater decentralization and clearer governance structures. Recent community votes have supported changes intended to shift more control toward the DAO and remove operational reliance on Aave Labs.
Grayscale has not released details about the ETF’s timeline or design. However, the filing added momentum to AAVE’s rally as traders viewed the product as another sign of institutional interest in DeFi assets.
According to the AAVE 1-day price chart, the token has been in a downward trend since falling from the $180-$190 range. The token reached a major swing low near $100 before showing a sharp bullish reaction. The latest candle closed near $130.50 with a gain of almost 10%.
However, the Supertrend indicator has remained bearish at around $140, signaling that the broader trend has not reversed. A close above the $140-$142 range would signal a potential shift in structure. Until then, the AAVE surge is a relief rally inside a broader crypto market downtrend.
Source: TradingView
Despite this, the Chaikin Money Flow moved above zero with a reading of 0.08. This move signals that capital inflows have returned after weeks of weak momentum. Concurrently, the True Strength Index also showed early signs of a possible momentum change. The blue line is attempting to cross the signal line, which often appears during periods of early recovery.
Consequently, the AAVE price trend has key support at $118-$120 and $100-$105, with resistance sitting at $140-$142, followed by $150 and the $165-$170 breakdown zone. A break above $140 would increase the probability of a trend reversal; however, a failure to reclaim this zone could result in prices revisiting lower levels.
