Aave Price Prediction 2022-2031: Is AAVE a Good Investment?


Aave is a robust DeFi protocol ranked 11 in the list of top DeFi tokens by market capitalization, according to CoinMarketCap as of 4 April 2022. Although the token has not shown gains YTD, its monthly performance is bullish, driven by the launch of Aave V3 update.

Depositors provide liquidity to the market to earn a passive income, while borrowers can borrow cryptocurrencies in exchange for paying a variable interest rate. Lenders get paid at a certain interest, and those who borrow pay interest on the crypto coins. However, if you want to trade, you need to know what the market says.

Today’sAave price is $75.60 with a 24-hour trading volume of $146,237,428. Aave is up 0.65% in the last 24 hours. The current CoinMarketCap ranking is #46, with a live market cap of $1,065,507,948. It has a circulating supply of 14,093,193 AAVE coins and a max. supply of 16,000,000 AAVE coins.

Let’s take a closer look at the circumstances of the coin before diving into AAVE price prediction in trying to determine whether it should be part of our crypto portfolio.

What’s AAVE?

Aave is simply an Ethereum-based money market where users can borrow and lend various digital assets, from stablecoins to altcoins. Aave (AAVE) is also the native cryptocurrency of the Aave platform: a decentralized finance (DeFi) platform where users can borrow a range of cryptocurrencies and lend assets in exchange for interest payments, all without needing an intermediary.

Decentralized lending system

Users of AAVE now require a traditional financial institution to manage their money. They need to trust the code used to write the program, and they won’t be disappointed. If you’re wondering about AAVE, it’s an acronym for African American Vernacular English. No matter, know that among several emerging DeFi cryptocurrencies, Aave is a decentralized lending system that allows users to lend, borrow, and earn interest on crypto assets without intermediaries.

The AAVE software allows a lending pool capable of lending or borrowing up to 17 different crypto coins, some of which include ETH, BAT, and MANA. And just like other DeFi systems, if you want to borrow AAVE, you need first to deposit collateral. The equivalent of whatever you post is what will be given to you as a loan. The borrower then collects the funds as a unique token called aToken. The aToken is assigned the worth of another asset and then encoded so that lenders receive interests when they deposit.

5th highest TVL

Aave, along with the likes of Uniswap (UNI), Compound (COMP) and Curve, is considered one of Ethereum’s blue-chip DeFi protocols. Aave is also deployed on layer-1 network Avalanche (AVAX) and Ethereum’s layer 2 protocol Polygon (MATIC). 

According to DeFi total value locked (TVL) aggregator DefiiLlama, the Aave protocol has the fifth highest TVL across all blockchain at $14.3bn, as of 4 April. Aave protocol is currently the top DeFi platform in terms of TVL on Avalanche and Polygon.

Aave Overview 

AAVE Founder

Aave Price Prediction 2022-2031: Is AAVE a Good Investment? 1

Source: Bing images

AAVE was developed by Stani Kulechov in 2017. Stani hails from Finland, and he is a programmer and an entrepreneur. He started the AAVE cryptocurrency. He is majorly into cryptocurrency, blockchain, and fintech.

He graduated with a Law Master’s degree in 2018. He graduated from the University of Helsinki. While at the university, he worked as a Trainee at a Law Firm named Castrén and Snellman between January and May 2017. He was still a trainee between August and November of the same year at Bird and Bird. He then became a Member of the Legal Aid Committee of the Law Students Association of Pykäläry.

While he was at the university for his Master’s, finance struck his interest, becoming involved with FinTech. The concepts of smart contracts and Ethereum blockchain became appealing to him, and he was motivated to develop a decentralized financial system.

AAVE’s Price History

ETHLend started in 2017 as a peer-to-peer digital asset lending and borrowing platform. It generated $16.2 million during an initial coin offering (ICO). During the same ICO that 1 billion units of LEND coins were sold, with 300 million reserved for the AAVE team.

ETHLend was given a new name in 2018, AAVE, with ETHLend becoming a subsidiary. Note that AAVE means ghost in Finnish. In January 2020, the protocol officially went live on the Ethereum mainnet. By August of the same year, the AAVE token rose to be the second DeFi protocol to get to $1billion in total value locked, with MakerDao being the first.

In the same month (August), AAVE was awarded an EMI (Electronic Money Institution) license by the FCA, which saw LEND rapidly rise by 30% to a new ATH at the time. Around the same time, a second version of the AAVE protocol was announced and was released on 3 December of the same year. Other features were reported simultaneously, involving a trading desk, a game studio, and a payment system.

Aave’s proposal to upgrade its protocol was passed unanimously by its community. Following Aave v3’s mainnet launch on 16 March, AAVE token surged as much as 114% to a near three-month high of $261.29 hit on 1 April 2022.

Aave Price Prediction 2022-2031: Is AAVE a Good Investment? 2

Where to buy AAVE?

Steps to Buy Aave

Step 1 – Open an Online Account. The 1st step to buying Aave begins with opening an account with an exchange that supports Aave. …

Step 2 – Buy a Wallet (Optional). After deciding where you want to purchase Aave and opening your account, you can open a wallet to store your tokens safely.

Step 3 – Make Your Purchase.

Crypto.com App users can now purchase AAVE at true cost with USD, EUR, GBP, and 20+ fiat currencies and spend it at over 60M merchants globally using the Crypto.com Visa Card. 

Coinbase customers can now buy, sell, convert, send, receive, or store AAVE, in all Coinbase-supported regions, except New York State. Same steps as on top. 

AAVE Latest Developments

The Aave DAO gave the development team the green light to launch its decentralized stablecoin GHO. Aave users will mint the stablecoin against their collateral on the platform. The proposal for a stablecoin was made on 7 July 2022 by Aave Companies (development team of Aave protocol) for the launch of GHO, an overcollateralized and US dollar-pegged stablecoin. Upon due consideration by the Aave community, 12 votes were against the proposal, while 17 abstained; the proposal received 99.9% approval from the community, which committed over 500,000 AAVE tokens. The approved proposal also included that Aave V2 on Ethereum will be the first facilitator for GHO. Ethereum will enable to provide liquidity by generating and burning GHO tokens when needed.

Further discussions on GHO are ongoing on the Aave governance forum.

Aave Technical Analysis

Aave rose steadily in the last two months after hitting bottom in mid-June, as shown by the William Alligator trend lines. However, the trend recently assumed a downward trend; the MACD histogram suggests reducing price momentum to the downside. The 14-day relative strength indicator shows no sign of Aave price reversal.

Aave Price Prediction 2022-2031: Is AAVE a Good Investment? 3

Aave Price Predictions from Authority Sites

Walletinvestor

According to Wallet investor, AI, and machine learning algorithm, Aave cryptocurrency’s past market performance ranks ‘B+’ and would make a ‘bad’ long-term investment. The average forecast price for the coming two weeks will be dominated by bears, falling from the current price to $70.409 at the end of the period. The technical analysis predicts Aave will lose 97.987% of its value in one-year, falling from its current price to $10.775.  There will be a price drop in 2024 to an ROI of -87.77%. Aave ROI in 2025 will be -84.42%, in 2026, it will be -94.29%, and in 2027, it will be -88.55%.

CryptoPredictions

Cryptopredictions analyze historical data to predict the cryptocurrency market. Their cryptocurrency market analysis expects the Aave cryptocurrency price to reach $77.866 in October. It will rise towards the end of the year and will be trading at an average price of $78.356 in December. The rise will continue into 2023 when it trades at $79.074 in January and $103.576 in December. The year 2024 will be dominated by bulls, pushing prices from $106.656 in January to $138.657 in December. 2025 will have similar performance, opening at $141.345 in January and closing at $167.070 in December.

Digitalcoin Price

DigitalcoinPrice Aave’s price forecast is exceptionally high compared to Walletinvestor. Aave has been downward for the better part of this year. As it recovers, Aave is expected to rise by about 25% in October to $96.84. It will trade between a minimum price value of $102.7 and a maximum price value of $107.0 for the remainder of the year. The Aave average price in 2025 will be $304.16, with a maximum price value of $320.61 and a minimum price value of $284.52. In 2030, Aave will experience tremendous growth with an average price of $1032.49, a minimum price of $1020.35, and a maximum price of $1047.95.

Cryptopolitan

Aave Price Prediction 2022-2031: Is AAVE a Good Investment? 4
Aave Price Prediction 2022-2031: Is AAVE a Good Investment? 5

Aave Price Prediction 2022

Aave coin price prediction for 2022 is $88.44. At the beginning of the month, the AAVE DAO passed the proposal to have a native stablecoin GHO. Aave team will initially create the coin on Ethereum, and later, users will be able to mint it using their assets. 

Favorable market conditions will push Aave to a high price of $94.04 and a low price of $85.36.

Aave Price Prediction 2023

Aave coin price prediction for 2023 is 122.40. Over $8.8 billion worth of crypto across 7 networks is locked in the Aave ecosystem, with the value growing daily. The platform’s high valuation proves the Aave ecosystem’s stability and potential.

 Aave value in the crypto market will reach a high price of $147.59 and a low price of $118.86. 

Aave Price Prediction 2024

Aave coin price prediction for 2024 is $183.08. The Aave protocol allows its users to borrow crypto assets while providing collateral; this gives traders the advantage of arbitrage by taking advantage of the low borrowing interest rates. During the merge, ETH borrowing had to be paused following high activity on the platform.

Aave will reach a maximum price of $205.84 and a minimum of $183.08. 

Aave Price Prediction 2025

Aave coin price prediction for 2025 is $255.87. Aave provides a haven for earning interest on idle crypto assets; users provide liquidity on the platform to earn higher interest rates than those from traditional financial organizations. 

Aave’s bullish trend continues and will reach a maximum value of $299.77 and a minimum value of $246.71.

Aave Price Prediction 2026

Aave coin price prediction for 2026 is $434.22. Aave runs on a proof of stake (POS) consensus algorithm; therefore, the community can take part in securing the platform by staking their Aave tokens which, in return, earn interest. Staking also gives users voting rights for proposals made on the protocol. 

Aave will reach a high price of $379.04 and a low price of $366.25. 

Aave Price Prediction 2027

Aave coin price prediction for 2027 is $529.68. The Aave grants DAO provides financing to blockchain developers to build on the Aave protocol. The entire Aave community, through the DAO, controls the fund and allocations; incentives attract developments.  Aave will sell between $514.52 and $629.21. 

Aave Price Prediction 2028

Aave coin price prediction for 2028 is $815.81. Aave has partnered with other players to provide the best interest yields to its community. These partners include Balancer, Convex, Pooltogether, Curve finance, and Stake DAO, and these platforms provide the best defi solutions for the users. Aave will sell between $794.62 and $897.75. 

Aave Price Prediction 2029

Aave coin price prediction for 2029 is $1196.91. Security on the Aave platform is a top priority. The platform is audited and approved by Sigma Prime, Trail of Bits, Certora, Open Zeppelin, APDK, and Peckshield. These audits increase trade confidence and investments from financial institutions. Aave will sell for between $1164.28 and $1383.14.

Aave Price Prediction 2030

Aave coin price prediction for 2030 is $1756.04. The Aave protocol is highly decentralized and has an Aave risk DAO for security purposes. The risk DAO is tasked with ensuring safety on the platform by investigating protocol risks by vetting new listings and upgrades. Aave value in the crypto market will reach a high of $2,003.29 and a low of $1,696.19.

Aave token Price Prediction 2031

Aave token price prediction for 2031 is $2,526.33. The Aave protocol is secured with a safe backstop from insolvency- insurance with $244M worth of Aave coins. The funds secure investor accounts from uncertainties that may occur in the highly volatile crypto market. In 2031, Aave will sell between $2,456.09 and $2,968.75.

Aave Price Predictions by Industry Influencers

More Crypto Youtube Channel’s latest update on Aave uses the Elliot waves and Fibonacci indicators to predict future price movements. The update suggests a critical support level at $60 which, when breached, will send Aave tumbling; however, if it holds, Aave could surge to the $173 level in a Wave 3 formation.

Conclusion 

Aave had had a difficult time this year and only had a little reprieve in April when its price reached $250. The Aave team is on track to launch the GHO stable coin, bringing more defi opportunities to its ecosystem. The Aave protocol is, by all means, decentralized, open-source, and noncustodial. The community votes on most aspects of the platform in an open and verifiable manner.

Aave is expected to begin recovering from December and make up for its losses in the crypto market in 2023. Aave’s average trading price in 2025 will be $255.87, and in 2030 will be $1,756.04.

Exploits on Defi protocols this year have resulted in the loss of millions of investor funds; while Aave has not been attacked, blockchain bridges threaten the Aave platform’s security. The price of Aave is anticipated to continue rising into the future.

This article exhaustively analyzes Aave price trends in the future; however, always seek a second opinion from a financial advisor before investing in the crypto markets. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.





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