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 protocol called Aave, a prominent player in the crypto lending platform space. We will attempt to make a price forecast of the Aave for 2024-2050 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 its maximum, average and minimum price.
It is important to note that any price forecast is just the guesswork of market experts/analysts and making an investment decision should involve multiple considerations. 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, hence it is crucial to always do your own research and consider various investment options before making a decision.
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 Base, Polygon, Avalanche, Optimism, Fantom, Arbitrum, Metis and Harmony.
Aave has also introduced several innovative features to its protocol. One of these is "rate switching", which allows users to switch between stable and variable interest rates to optimize their borrowing costs. This feature is crucial for borrowers as it provides flexibility in managing their debts.
Another significant feature is "credit delegation", where a depositor can delegate their credit line to another user. This allows the delegatee to borrow against the depositor's collateral, enabling under-collateralized loans and opening up new possibilities for decentralized finance.
Furthermore, Aave has a governance system that allows AAVE token holders to participate in the decision-making process and propose changes to the protocol. This decentralized governance model ensures that the protocol remains transparent and aligned with the interests of its users.
As for its position in the industry, Aave has now firmly established itself among the top three DeFi protocols with a 3rd position in total value locked (TVL), which at the time of writing (August 2023) is $4.53b.
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.
In March 2021, Aave launched its AMM (Automated Market Maker), allowing users to use their LP (Liquidity Provider) tokens as collateral to borrow assets. This was a significant development as it provided more utility to LP tokens and facilitated borrowing on the Aave protocol.
To address the high gas fees on the Ethereum network, Aave expanded to Layer 2 solutions and launched on Polygon, a Layer 2 scaling solution for Ethereum, in March 2021. This allowed users to interact with the Aave protocol with significantly lower transaction fees, making it more accessible to a broader audience.
In July 2021, Aave announced the launch of Aave Pro, a permissioned pool for institutional investors. This was a significant step towards bridging the gap between traditional finance and decentralized finance, as it provided a regulated and secure environment for institutional investors to participate in the DeFi ecosystem.
In April 2022, Aave launched its third version, Aave V3, which introduced several new features such as optimized gas fees, multi-market access, and improved user experience. These enhancements made it easier for users to interact with the Aave protocol and contributed to its growth and adoption.
In March 2023, Aave launched Aave Arc, a service that allows institutions and fintech companies to create their own private and permissioned liquidity markets. This enabled them to have more control over the participants and the assets listed in their exchanges, and facilitated the integration of DeFi services into traditional financial systems.
Aave has also been actively supporting the development of the DeFi ecosystem through its Aave Grants Program, which provides funding to projects and developers building innovative solutions and tools that contribute to the growth of the Aave ecosystem and the broader DeFi community.
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.
This migration was a crucial step in the evolution of the platform as it transitioned from ETHLend to Aave, and marked the beginning of a new era for the project.
Holders of the token receive a discount on commissions and participate in site management by voting. This participation in governance is a key feature of the AAVE token, as it empowers the community to have a say in the development and operation of the platform. Proposals for changes or improvements to the protocol can be submitted by any AAVE token holder, and are then voted on by the community. This decentralized decision-making process contributes to the transparency and fairness of the service.
The coin is listed on more than 40 cryptocurrency exchanges. This wide availability makes it accessible to a global audience and facilitates trading and liquidity. The AAVE token is not only a governance token but also has other functionalities within the Aave ecosystem. It can be staked to earn rewards and is used as a reserve to cover potential losses in the protocol, providing an extra layer of security. As of August 2023, the current price of AAVE is $58.62, and there are approximately 14.6 million AAVE tokens in circulation.
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.
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.
The protocol offers stable and variable interest rates, catering to different needs. It supports a variety of cryptocurrencies, including popular ones like Bitcoin, Ethereum, and stablecoins like USDC and DAI. This versatility makes Aave suitable for a broad spectrum of traders and investors.
Additionally, developers and fintech companies use Aave to build applications and services that integrate with its protocol. Being open-source, Aave encourages the development of innovative financial products and services, contributing to a vibrant crypto ecosystem.
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 14,524,875 AAVE. The market capitalization is $841,942,668.
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.
Despite this achievement, the token's price has since been characterized by significant volatility, exhibiting a general downward trend. This period has been marked by intermittent price recoveries, but the overarching trajectory has been a decline in value. So at the time of writing, the value of the token is already about $58.
Experts Share Their Thoughts on AAVE Future Price
In August 2023, various experts shared their thoughts on AAVE's future value, contributing to the overall crypto market uncertainty. CoinCodex expressed optimism for AAVE's short-term price. Inside Bitcoins discussed a concerning bearish trend for AAVE.
TradingView indicated negative sentiment for the upcoming month, a worrisome sign amidst a potential crypto winter. WalletInvestor labeled AAVE as a good long-term investment. DigitalCoinPrice noted that AAVE traded at $58.26 per AAVE as of August 27, 2023.
CryptoCompare discussed AAVE's investment potential. Meanwhile, CoinLore predicted that AAVE's value in August 2023 would hover around a minimum of $49.21. CoinMarketCap also provided insights into AAVE's value for the years 2023, 2025, and 2030.
AAVE Price Prediction 2024
According to price forecast on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token value in 2024 will be:
AAVE Price Prediction 2025
According to predictions on the websites Changelly.com, Priceprediction.net, and Technewsleader.com, the next AAVE token price in 2025 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
AAVE coin price prediction 2027, according to the information on Changelly.com, Priceprediction.net, Technewsleader.com 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:
AAVE Price Prediction 2050
According to predictions on the websites Changelly.com, Priceprediction.net, Technewsleader.com the next AAVE token price in 2050 will be:
Potential Highs & Lows of AAVE Token
According to the experts, the value of AAVE will show a steady growth year by year and by 2050 could reach the mark of 3,627.64 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.
- MACD (Moving Average Convergence Divergence). It is a trend-following momentum indicator that shows the relationship between two moving averages of a security's price.
- Bollinger Bands, which are a volatility indicator that consists of a middle band being an N-period simple moving average (SMA), an upper band at K times an N-period standard deviation above the middle band, and a lower band at K times an N-period standard deviation below the middle band.
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 the 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 the 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.
Additionally, other factors such as the level of competition in the DeFi space, significant technological advancements or setbacks in the Aave platform or the Ethereum blockchain, broader economic indicators like interest rates and inflation, and the public perception of the Aave platform, the DeFi space, and the cryptocurrency industry as a whole can significantly influence the AAVE value.
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.
As the decentralized finance (DeFi) sector continues to evolve, Aave has positioned itself as a key player in the market. With its innovative features such as rate switching, credit delegation, and a decentralized governance model, Aave has not only attracted a significant user base but also established a strong foundation for future growth. Additionally, the AAVE token plays a crucial role in the ecosystem by enabling holders to participate in governance decisions and earn rewards, thereby aligning the interests of the community and the platform.
The Aave protocol has shown resilience and adaptability by expanding into other networks and continuously introducing new features to optimize user experience. Its position in the market, as indicated by its total value locked (TVL), reflects the trust and confidence that users have in the platform. Moreover, the integration with other popular DeFi protocols and the continuous efforts to enhance security and usability have contributed to its sustained growth.
However, the crypto market is highly volatile and influenced by various factors, including regulatory changes, demand, and the overall global economic situation. Therefore, while Aave has demonstrated strong potential, it is crucial for investors to conduct thorough research and consider all possible scenarios before making any investment decisions. It is also advisable to stay updated with the latest developments in the Aave ecosystem and the broader crypto industry to make informed investment decision.
Ultimately, the future of Aave will depend on its ability to maintain its innovative edge, adapt to changing market conditions, and continue to meet the needs of its users. As with any investment, there are risks involved, and it is essential to approach with caution and a well-thought-out strategy. In conclusion, while Aave has shown promising growth and has a strong community backing, it is important to carefully assess the potential risks and rewards before investing in AAVE or any other cryptocurrency.
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. So, according to the Changelly.com forecast, the value of the token will overcome this mark by 2030.
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 $790.25.
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