Aave Labs CEO Stani Kulechov has dismissed recent Kraken buyout talks. According to reports, crypto exchange Kraken is planning to acquire a 15% stake in Aave Group, the entity behind DeFi lending protocol Aave.
In return, the exchange would reportedly invest $71 million, inclusive of a 35,000 ETH investment as part of the deal.
Although Kulechov did not deny the talks, he corrected some of the details that went public, noting that,
First off, there is no way we’d sell AAVE at a 70% discount lol…Aave is currently generating $134M in annualized revenue, which goes to the Aave DAO.
He added that Aave is building for the entire finance’s total addressable market (TAM), including tokenization, and not just crypto. And the revenue will go to Aave DAO, not Aave Labs.
Additionally, Kulechov said there are plans for Aavenomis 3.0, which would include a “new automated and non-discretionary buyback mechanism.”
While it’s unclear whether the reported deal will be closed or not, the update boosted AAVE’s value on the charts.
AAVE extends price rally
The altcoin surged by 12% after Kulechov clarified the buyout talks. The upcoming tokenomics and buyback plan could likely have been a catalyst.
AAVE’s bounce hit $88, marking an over 50% recovery rally in June. This, despite the token still being down about 77% from its 2025 record level of $386 at press time.
Even so, its recently impressive recovery has not been surprising.
Most altcoins had printed yearly lows, and seller exhaustion crept in. In fact, Santiment data showed that AAVE’s overall selling pressure, as tracked by supply on exchanges, began dropping sharply in late May.
This coincided with AAVE’s price local bottom near $50. With reduced selling pressure, any minor catalyst has made select altcoins, including AAVE, front strong rebounds.
For AAVE, however, the pullback in 2026 was driven by governance conflicts and macro pressure. As several builders left the ecosystem, citing excessive control by Kulechov-led Aave Labs, the AAVE’s price dumped.
It remains to be seen how the market will react to the Aavenomics 3.0 floated by Kulechov and whether it will boost AAVE’s recovery.
Final Summary
- Aave Labs CEO rejects Kraken buyout reports, says they’ll never sell at a discount.
- AAVE extended its June recovery rally to +50% following Aavenomics 3.0 plan.
