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Aave (AAVE) is a DeFi liquidity protocol to let users lend and borrow a wide range of cryptocurrencies. To run this lending and borrowing process, AAVE allows the users to participate as borrowers or depositors.
The borrowers can borrow funds in an over-collateralised (perpetually) or under-collateralised (one-block liquidity) way. To do so, they need to collateralise their crypto assets and take out loans from the liquidity pools.
If you consider staking, check the 10 best coins to stake in 2023.
To benefit from staking and passive income options in this platform, you need the token of this network, which is also called ‘Aave’. We’ll get to know this token after learning about the main features of the AAVE platform.
The intrinsic features of AAVE differentiating it from similar platforms include being
Being decentralised means a central authority is not in control and being non-custodial means that the users control their private keys, not the platform.
Also, AAVE uses smart contracts to run its activities in a permissionless and trustless way. Another significant feature of AAVE is the possibility of creating “flash loans”.
As the name suggests, a flash loan is to be available in a few minutes, i.e., in a flash! When the loan period is over, the loan is repaid automatically, and no collateral is needed.
The main difference between flash loans and traditional ones is that flash loans don’t work based on credit but on the borrower’s capacity to pay back the funds in the short period specified. Also, the borrower must have a definite amount of liquidity to be entitled to the loan.
The best thing about AAVE flash loans is that you can use them for
Despite these advantages, flash loans are high-risk options, and you need to ensure to gain enough technical knowledge of DeFi before taking flash loans.
To get these flash loans or generally borrow from the AAVE platform, we need the protocol’s native cryptocurrency - AAVE Coin. Let’s learn more about this token and its use cases.
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The native token of the Aave protocol is called the AAVE coin, and knowing how it works is the prerequisite of AAVE staking and AAVE price prediction.
As the governance token of the platform, AAVE allows its holders to participate in controlling the protocol’s activities and decisions by gaining voting rights.
This token can also be used for staking, borrowing, and protecting liquidation. Let’s see how.
AAVE Coin has seen significant price changes since its launch, which we’re about to elaborate on in the following section on AAVE's price history.
As mentioned above, knowing AAVE Coin and its uses-cases is an essential requirement for AAVE price prediction. In addition to the token’s use cases, we need to know all about its price changes to see how it’s performed so far.
Also, based on the patterns we find, we can predict how it may perform in the coming years.
To get a better picture of the AAVE price changes in the recent year, check out the following price chart and continue in the next section to read the details of its financial analysis.
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AAVE Coin is currently held in over 382K blockchain wallets, recording a total of over 2.6M transactions. Its current liquidity score is 64%, which is higher than the market average, making AAVE a relatively easy sell in bearish markets.
If you are considering buying or selling Aave, you can use Bitge, which is currently one of the active exchanges to trade this token.
Other financial factors we need to know about AAVE include its Tokenomics, ROI, Market Cap, ATH and ATL, which we’ll elaborate on in the following sub-sections.
AAVE token is allocated as the following pie chart depicts. As you can see, the biggest share is dedicated to core development. Also, the platform allocates the same 20% to management & legal issues, user experience development, and promotions & marketing. The remaining 10% is allocated to unexpected costs.
ROI (Return on Investment) is an index indicating a token’s lucrativeness in varied time frames. Let’s check the AAVE ROI and see how beneficial the token has been in the recent year, month, week, and 24 hours.
AAVE Annual ROI: -69.18%
AAVE Monthly ROI: 9.63%
AAVE Weekly ROI: 15.89%
AAVE 24hr ROI: 7.04%
AAVE’s yearly ROI is way lower than similar projects, which hit a total ROI of 11,503,205% during the time frame. Over the same period, the crypto market, in general, has reached an ROI of 8,720,318%.
AAVE’s -69.18% Return on Investment means that if you invested $100 in AAVE a year ago, you’d lose about 70% of your funds.
Don’t forget that the bear market situation worsens the returns, and many projects have experienced the same downtrends during the recent year.
AAVE financial analysis indicates that the token’s current Market Capitalisation is $868,579,613, with a market cap rank of #43 among all the crypto projects in the market.
Also, the token’s total supply is 16,000,000, with an 89% circulating supply, equalling 14,228,708 AAVE coins.
Learning the financial situation of AAVE is only one side of the story. The other side includes its fundamental analysis. Let’s see what we mean by the term.
The term fundamental analysis refers to AAVE’s team, popularity, and investors. Why do we need to know these? Well, knowing the team behind AAVE helps us understand if the developers know their way around the crypto space and if we can expect good work.
Also, the popularity of a project on social media shows how active its community is, which directly impacts a token’s future price pumps.
Additionally, the investors behind a project can tell us how strong the project is, i.e., if a crypto project is not backed by strong investors, the possibility of sudden dumps increases, which is a clear red flag. So, let’s learn it all about AAVE.
Popularity charts made by Cryptologist indicate that in the recent year, AAVE has gained popularity over social media as its Twitter account’s growth rate is 32%. Also, its accounts on Reddit and Telegram have seen a growth rate of 10% and 12%, respectively. However, during the recent six months, Aave’s Telegram channel has shown a negative growth rate (-3%).
AAVE is backed by the following investors.
After learning the essential basics of the AAVE platform, it's time to check AAVE price prediction. We’ll elaborate on the token’s annual growth rate in the following sections, but here you can take a glance at AAVE price prediction from 2023 to 2030.
AAVE price prediction 2023 indicates that the token’s minimum price is expected to have a 32% growth by the end of 2023, reaching $88.75. Aave’s average and maximum prices are predicted to increase by about 36% and 54%, respectively.
AAVE price prediction 2024 shows that the token can see a 100% increase in its minimum price. Reaching $137.77 and 158.02 in 2024, AAVE’s average and maximum values can increase by over 105% and 135%, respectively.
AAVE price prediction 2025 expects to experience a roughly 200% increase in AAVE token’s minimum price. Its average and maximum price levels can see growth rates of about 207% and 247% during 2025, hitting $206.10 and $232.95, respectively.
AAVE price prediction 2030 expects exponential growth in the token's price. Its minimum value is expected to grow by over 1800%. Its average trading price has the potential to grow by over 1900% reaching $1347.75. Optimistically predicting the AAVE Coin’s price in 2030, we can expect a 2180% growth.
AAVE is currently traded at a good price of $67.09, with a liquidity score of 64% in the current bear market. Its popularity is increasing over social media platforms, and the number of its transactions is on the rise.
As the above price predictions indicate, AAVE has the potential to grow even more in the coming years, meaning that AAVE can be a lucrative investment in the long term.
In addition to that, providing the staking option can make AAVE an ideal choice for those who wish to earn some dollars while waiting for the token’s golden years to come.
If there are still unanswered questions on your mind about AAVE price prediction, check out the following Q&As.
Yes, AAVE seems to be a safe platform with its efficient lending and borrowing processes. Also, it recurrently appears on many lists of recommended tokens.
Yes, some predictions expect AAVE to reach $1000 by 2029.
AAVE price prediction 2030 shows that the token is expected to be worth about 1347.75$ on average.
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