AAVE Price Prediction 2023, 2025, 2030 - Will AAVE (AAVE) Price Go Up?

AAVE Price Prediction

This article presents a technical and fundamental analysis of the AAVE token's price history. AAVE is the native token of the decentralized credit platform called Aave. We will attempt to make a prediction of the Aave price for 2022-2030 based on the analysis and share the experts’ opinions. By the end of this review, you'll have a clear picture of what the future holds for the AAVE token in terms of how high its price will be.

Keep in mind, however, that predictions are just the guesswork of market experts/analysts. Predicting future prices is extremely challenging due to multiple factors, such as protocol performance, crypto regulations, politics, global economic conditions, etc. Not all predictions turn out to be accurate. Always do your own research.

What is the AAVE Protocol?

Aave is a decentralized protocol for lending and borrowing crypto assets. Depositors provide liquidity to the market for passive income, while borrowers can take out loans that are over-collateralized (perpetual loans) or under-collateralized (flash loans).

Originally running on the Ethereum blockchain, Aave has undergone many transformations and upgrades. Its version 3 has expanded into other networks, such as Polygon, Avalanche, Optimism, Fantom, Arbitrum, and Harmony.

Aave has now firmly established itself among the top five DeFi protocols with a 4th position in total value locked (TVL), which at the time of writing (November 2022) is $4.54b.

AAVE Overview

Here is a brief overview of the AAVE token.

History of AAVE

Stani Kulechov founded Aave in May 2017 under the name of ETHLend. In November 2017, ETHLend launched ETHLend.io, a P2P lending platform, and held a $16.2 million ICO. The project sold 1 billion LEND native tokens.

In 2020, ETHLend was rebranded to Aave. The project introduced users to a new protocol, the key difference being the algorithmic money market feature. Whereas previously ETHLend selected borrowers individually for lenders, the relaunch introduced a system of liquidity pools. Assets became pooled, and interest rates started being calculated algorithmically.

In October 2019, the public test network of Aave V1 went live, and on January 8, 2020, the main network of the first version of Aave launched on the Ethereum blockchain. Further on, in October 2020, the native AAVE token was released and the LEND→AAVE migration took place at a ratio of 100 to 1. In December 2020, the Aave V2 core network launched, followed by AaveV3, in April 2022.

What Is AAVE Token

The native governance token of the Aave platform is the ERC-20 standard AAVE token. Before the relaunch of the project, the token had the ticker LEND. For ICO purposes, 1.29 billion LEND tokens were issued, 1 billion of which were sold. On October 2nd, 2020, token migration to the new project AAVE was initiated with a ratio of 100 LEND = 1 AAVE.

Holders of the token receive a discount on commissions and participate in site management by voting. The coin is listed on more than 40 cryptocurrency exchanges.

Who Uses Aave?

The main users of the Aave platform are people who want to maximize their crypto holdings by generating passive income.

Also, Aave allows borrowing cryptocurrency. This is a great option for users with idle crypto assets who need liquidity.

Traders who use loans for arbitrage, collateral exchange, and self-liquidation enjoy Aave’s flash loans feature.

Roadmap

The Aave protocol is decentralized and governed by AAVE holders. There is no pronounced roadmap, as the project's future depends on the decision of AAVE holders. You can follow the proposals and discussions on the official governance forum.

Tokenomics

The total supply of AAVE tokens is 16 million. The protocol’s users received 13 million through an exchange for the old tokens. The other 3 million are kept in the project’s reserves.

The circulating supply at the time of writing is 14,165,306 AAVE. The market capitalization is $967,785,549.

Crypto Community About AAVE

A crypto-maximalist and validator of popular networks argue that Aave is a proven platform that has demonstrated resilience amidst the challenges of the cryptocurrency market:

Amid the decline of FTX and problems on other centralized exchanges, the creator of Fastdefitutorial.com and Savethecrew.com writes about the reliability of Aave:

Cofounder Fourth Revolution Capital talked about the benefits of decentralized Aave loans for NFT artists:

AAVE Price Analysis

At the time of writing, the AAVE token was at $62.62. On the chart, we can see that in the first half of 2021, there was a sharp rise in the price of AAVE. This was primarily due to DeFi gaining popularity.

Thus, by mid-May 2021, the token's price reached a record high of $670, after which, it decreased threefold within days. Since then, the price of AAVE has shown a steady bearish trend, dropping by more than 90%. It remains extremely volatile, with occasional increases of 80% to 130% percent.

AAVE Price Movement in Recent Years

The ICO of the AAVE token (with the ticker LEND then) was priced at $0.017 per token. Until the rebranding to AAVE, the price of the LEND token did not exceed $1. Then, LEND was exchanged for AAVE in October 2020 at a ratio of 100 to 1. After that, AAVE started trading at around $50, and dropped to $25.98 over the next month.

However, thanks to DeFi's growing popularity, the project took one of the leading roles in the emerging decentralized finance market. AAVE's meteoric rise followed, with its market capitalization topping $1 billion for the first time in early December. By the end of 2020, AAVE was worth $88.48, a gain of about 77% since the rebranding.

In January-February 2021, AAVE's price rose several times over, reaching $578.10 on February 10, 2021. At that time, Aave already had a market capitalization of more than $6.7 billion. After bouncing back to $310, AAVE's price set an all-time high of $670 on May 18, 2021.

Experts Share Their Thoughts on AAVE Future Price

Let’s look at AAVE crypto price prediction from the experts as of November 2022. The cryptocurrency data website CoinCodex gives an optimistic short-term price forecast.

However, in the long term, there is a bearish sentiment, as 86% of indicators are predicting a bearish trend.

A technical analyst from the crypto news platform Inside Bitcoins, also predicts a bearish trend of AAVE.

The TradingView indicators showed negative sentiment for the next month. The predictions are based on the most popular technical indicators. For a real-time update of the sentiment, click here.

AAVE Price Prediction 2022

According to predictions on the websites, Changelly.com, Priceprediction.net, and Technewsleader.com, the next AAVE token price in 2022 will be:

AAVE Price Prediction 2023

According to predictions on the websites Changelly.com, Priceprediction.net, and Technewsleader.com, the next AAVE token price in 2023 will be:

AAVE Price Prediction 2024

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2024 will be:

AAVE Price Prediction 2025

AAVE coin price prediction 2025, according to the information on Changelly.com, Priceprediction.net, Technewsleader.com will be:

AAVE Price Prediction 2026

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2026 will be:

AAVE Price Prediction 2027

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2027 will be:

AAVE Price Prediction 2028

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2028 will be:

AAVE Price Prediction 2029

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2029 will be:

AAVE Price Prediction 2030

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2030 will be:

AAVE Price Prediction 2040

According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2040 will be:

Potential Highs & Lows of AAVE Token

According to the experts, the price of AAVE will show a steady growth year by year and by 2030 could reach the mark of 2115.44 dollars.

How To Read And Predict Aave Price Movements?

The combination of technical analysis of the AAVE price and fundamental analysis of the Aave platform, as well as analysis of market sentiment, are all critical for predicting the future price movement of the AAVE token. To make an informed decision about when it is best to buy, sell, or hold cryptocurrency, traders need to perform all of the above types of analysis.

Aave Coin Price Prediction Indicators

Traders typically use technical analysis to predict AAVE price movements on short- and medium-term timeframes. Such analysis includes the study of price patterns in the past. In order to identify these patterns, investors analyze the price chart with the use of technical indicators, the number of which is endless. They can vary from a simple moving average to the most complex set of algorithms. Here are the most widely used indicators:

• Moving Average, MA. This indicator displays the average of n past values up to the current moment;
• Exponential Moving Average, EMA. It gives more weight to the most "recent" values, but does not discard old values completely;
• Rate of Change, RoC. It is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago.
• Relative Strength Index, RSI. It is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

How To Read AAVE Charts And Predict Price Movements?

The major tools for price predictions are various charts and graphs representing the dynamics of both price and volume.

The most popular tool among professionals is the "Japanese candlestick chart". It contains more information than a regular line chart. Besides displaying the change in price based on the closing market price, this type of chart also shows the price movements over a certain period. Each candlestick has information about the highest, lowest, opening, and closing prices.

The candlestick consists of three parts: the upper tail, the lower tail, and the body. The upper tail shows the highest price and the lower tail shows the lowest price within the selected period. Depending on the trend, the body is colored green (bullish) or red (bearish). So, if the closing price was higher than the opening price, the candle is green, and if the price was lower — it is red.

Different candle chart shapes give crypto traders information about ongoing and future trends. There are about ten types of candlestick patterns. Below you can find the information about the basic ones.

Bullish and Bearish Price Prediction Patterns

The Hammer pattern is a bullish pattern. It looks like a short body with a lower tail. That is, the candle shows that the price went down strongly, but in the end, the price consolidated above the opening price — the buying mood is dominant.

Another bullish pattern is the Inverse Hammer, which implies that buyers control the trend. The candle shows that the price rose strongly, but then it returned to a small plus by the close — the buying sentiment is testing the upper positions.

Bearish candlestick patterns are also represented by the Hanging man and the shooting star patterns. The Hanging Man has the same shape as the Hammer, but it can be found at the end of an uptrend. The price came down hard but has locked in near the opening mark. This means that the buyers managed to partially and temporarily increase the price of the cryptocurrency, although the overall result of the candle is negative.

In a Shooting star pattern, the price went well up, but came back down and closed near the opening. It may show that buyers are running out of strength and the cryptocurrency will start selling.

You can also learn more about the basic patterns from our article.

Several Factors That Drive AAVE Price

Asset prices on the cryptocurrency market are extremely volatile, and AAVE is no exception. To avoid possible losses, it is important to understand what affects the AAVE exchange rate. Some of the major factors affecting the AAVE exchange rate in 2022 include the following:

• The value of Bitcoin as the first and most influential cryptocurrency;
• Regulation of the DeFi market;
• Massive adoption and popularity of decentralized finance;
• The political environment in the world;
• Manipulation of the market by "whales";
• Modernization and security of the networks on which the Aave protocol operates, as well as the development of the Aave protocol itself.

Aave Reacts to ETH Merge

Overall, the impact of The Merge on the Aave platform is not significant, as the platform has long been running not only on the Ethereum network. However, in the run-up to the update, the borrowing from Ethereum through the Aave protocol was paused. The decision was motivated by the high risk of increased borrowing. It was assumed that users would borrow ETH to benefit from potential PoW forks of the Ethereum network.

As for the price of the AAVE tokens, it reacted accordingly to the whole cryptocurrency market. A few days before the update, the token price showed a growth of almost 40%. However, in the following week after The Merge, the price fell to the marks significantly below the levels that were before the update.

Final Thoughts

Aave (AAVE) is a pioneer in the decentralized lending market and is popular among DeFi users, and the development team is working hard to promote it and increase its popularity. According to CoinMarketCap, AAVE cryptocurrency is one of the top 50 assets by market capitalization. The reliability of the platform and stable interest rates on loans attracts investors. All this gives the project strong fundamentals.

However, Aave's future depends heavily on the overall direction of the cryptocurrency industry and the state of the market. Before investing in AAVE, make sure you use the right strategy for your level of risk tolerance.

FAQ

Does Aave Have a Future?

The future of the project largely depends on the development of the entire DeFi sector. At the same time the project is actively developing, striving to be at the forefront of the industry of decentralized finance.

Is Aave Better Than Bitcoin?

Aave cannot be compared to Bitcoin because they are completely different projects, aimed at solving different problems.

Will Aave Price Reach $1,000?

Given that the price of the AAVE token has reached its highest price level in the past at $670 in May 2021, and given the predictions of experts, the $1,000 goal doesn't look unattainable.

Is Aave A Good Investment?

Given the current bearish trend in Aave's price movement, there is a high possibility that the cryptocurrency could continue to fall in price. Even though AAVE's prediction looks optimistic, still, invest wisely and don't forget to DYOR before investing in any type of asset.

What Will Be AAVE Price in 5 years?

According to the AAVE forecast from the experts at Price prediction, in five years the asset could reach $673.09.

Is Aave a Scam Or Legit?

Aave is one of the largest providers of decentralized lending with a highly efficient protocol. Aave seems legitimate and ranks at the top of most recommendation lists.

Where Can I Buy Aave?

AAVE is traded on all popular exchanges such as Redot, Binance, or Coinbase. Or on DEXs like SushiSwap, Uniswap, or PancakeSwap.

*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation