Blockchain technology can influence and improve many aspects of our daily lives. It can help reshape healthcare, education, and, of course, finance. Decentralized Finance (DeFi) applications are one of the big areas blockchains have a major impact right now. They are creating a new financial system not controlled by banks but by users. A system that is more fair and accessible to millions of people who would otherwise be excluded from financial services.
One of the most basic financial applications is lending and borrowing money. The ETHLend platform and its LEND coin were created so that users could lend and borrow using cryptocurrencies. This was back in 2017 before the term “DeFi” had even been coined. Maybe you’ve heard about LEND. In 2018 LEND was migrated to Aave. But what has happened with this token since then? Is it still strong? Is it a good investment? Read on for an Aave price prediction for 2021, 2022 & 2025.
Aave Historical Price Analysis
LEND coin was launched in November 2017 as the token powering the ETHLend platform, but the team behind it decided to migrate to a new coin called Aave (after the Finnish word for “ghost”) in September 2018. Aave’s price remained pretty stable during most of 2019 and 2020, hovering around 40 USD. But the token started gaining momentum in early November 2020 and was worth over 85 USD by December 2nd. It would close 2020 with a price of 86.79 USD. So Aave more than doubled its price in 2020. That's not bad, but it pales in comparison to what's been happening this year. Aave's price skyrocketed during January 2021, reaching its all-time high of almost 530 USD on February 2nd. After that day, the price has been following a general downward trend, but there has been very high volatility.
Aave Current Price, Market Cap & Supply Details
At the time of writing, 1 Aave is worth 406.98 USD, with a 24-hour low of 378.15 USD and a 24-hour high of 411.55. Aave’s market cap is currently just over 5 billion USD, and there are 12,430,302 Aave tokens in circulation, which is 78% of the Maximum Supply of 16,000,000 tokens.
Aave Future Price Forecast Predictions
It doesn't matter if someone is using a crystal ball, reading coffee grounds, or casting bones. We all know that nobody can really predict the future. And when it comes to cryptocurrencies, predictions are even harder. Who would have paid 10,000 Bitcoins for two pizzas if they had known each coin would be worth around 50,000 USD today?
After all, 500 million dollars is a little steep for a couple of pies. And this actually happened on May 22nd, 2010. Now take a moment to think about the person that received those bitcoins.
If they held on to them, they are set for life. Or several lives, for that matter. Cryptocurrencies can be great investments if you can spot the ones that aren't worth much today but can be worth a lot in a few months or years.
So people want to predict the future of cryptocurrencies, and because of this, a lot of experts are using special computer algorithms to study crypto tokens' price patterns and using those tools to make predictions about what their price could look like in a few weeks, months, and years. Let's take a look at what they're saying about Aave:
Short Term Forecast
Long Term Forecast
Aave Price Prediction for 2021
Predictions say 2021 should be a good year for Aave. After a new all-time high of 530 USD on February 2nd, there was a downward trend in price with a low of 328 USD on February 26th. That trend has been reversed during March and is expected to close the month at around 400 USD. The rest of 2021 is predicted to be more favorable, and Aave should close 2021 at around 825 USD.
Aave Price Prediction for 2022
2022 should also be a good year for Aave, according to most predictions, starting at about 825 USD and ending the year at around 1,450 USD.
Aave Price Prediction for 2023
Predictions say that 2023 will bring a decline in Aave’s price. The price should keep stable at around 1450 USD during the first half but start going down in the second half, closing 2023 at 840 USD.
Aave price prediction for 2025
The downward trend in Aave’s price that started in 2023 is expected to continue through 2024 and into 2025. Aave could go as low as 333 USD during the first quarter.
Is Aave a good investment?
Aave is going through a low price phase at the moment, but it’s not expected to last very long. The price should recover within the month and could triple by the end of the year. Aave looks good as a short-term investment. However, with an expected price drop starting in mid-2023, things don’t look so good in the long term.
How to Buy Aave?
If you want to get your hands on some Aave tokens, you’ll find that it’s not much different from buying almost any other altcoin. The first step is figuring out where you can buy them (which exchanges list Aave) and then see which currencies you can use to pay for them (which trading pairs are available). A good place to start is coinmarketcap.com. Let’s look at their market listings for Aave:
You can see that the top exchanges for buying Aave are Coinbase Pro (with US Dollars, Euro and Bitcoin), Binance (with Bitcoin and Binance USD), Gate.io (with Tether), Uniswap, and Balancer (both with WETH).
After you choose your exchange, create an account there if you don’t already have one, or log in if you do. Choose your trading pair (if the exchange offers more than one) and transfer funds into your exchange wallet. Finally, go over to your exchange’s marketplace and make your purchase.
More information about Aave
What is Aave?
Aave (named after the Finnish word for “ghost”) is the name of both a DeFi protocol and the cryptocurrency that powers it. The Aave protocol lets users borrow or lend money using cryptocurrencies. Aave has been audited and deemed secure and, at the time of writing, supports lending and borrowing in DAI, USD Coin, TrueUSD, Tether, sUSD, Binance USD, Gemini Dollar, Wrapped ETH, Uniswap, Yearn.Finance, Basic Attention Tokens, REN, EnjinCoin, Kyber, ChainLink, Decentraland, Maker, SNX, WBTC Coin, 0x, Curve DAO, Balancer, and xSUSHI.
The Aave crypto token is used for governance on the Aave protocol. In other words, people who own Aave tokens get to vote and decide on improvements to the platform. Aave tokens can also be staked for passive income and to provide insurance to depositors.
Who is behind Aave?
Aave is developed and maintained by a large team of people, including:
- Stani Kulechov: Founder / CEO
- Jordan Lazaro: COO
- Rebecca Rettig: General counsel
- Ville Valkonen: Chief Compliance Officer
- Ajit Tripathi: Head of Institutional Business
- Isa Kivlighan: Digital Marketing Manager
- Pol Sendra: Software developer
- Pablo Candela: Community Manager
Who is using Aave?
Aave is a money lending platform, so its users are generally either people who need to take out a loan for some business or personal project or people who have some extra crypto tokens and want to make some more money by earning interest rates. So there are borrowers and lenders on Aave. Lenders deposit their tokens into liquidity pools and receive an equal amount of Aave tokens. So, for example, let's say you deposit 100 BAT into those pools, you would receive 100 Aave tokens. Borrowers can take out loans with a value of up to 75% of their collateral. So if you have 200 DAI as collateral, you can borrow up to 150 DAI.
Have you ever tried to take out a loan from a bank? If so, you know it's not easy. Their background and credit checking, need for collateral, and other requirements are next to impossible to meet for a lot of people. Especially if you take into account that in some parts of the world, a large portion of the population doesn't even have a bank account. All in all, millions of people don't have access to even the most basic of traditional financial services. This is where DeFi platforms come in.
They are creating a financial landscape not controlled by banks but by users themselves. This is why ETHLend, now called Aave, was created back in 2017. People who want to lend money deposit cryptocurrencies into liquidity pools from which other people can borrow. There is currently over 5.3 billion US Dollars' worth of cryptocurrencies in those pools. The Aave platform is powered by the Aave token.
This was the first cryptocurrency lending platform, a true pioneer in the DeFi world. After achieving success as ETHLend in early 2017, the developers expanded the platform's features and rebranded it. But it wasn't really until November 2020 that the token's price took off and reached an all-time high by early February 2021.
It is currently hovering in a lower price range, but most price predictions say that it could rise significantly later this year, so according to those experts, this looks like a good time to invest as Aave is expected to triple in value within one year. But what do you think about Aave? Are you considering investing? How do you think DeFi apps can impact your life? Let us know in the comments.