The concept of loaning money has been around for centuries. With the advent of cryptocurrencies, it was only a matter of time before an altcoin came along that would lead the way in crypto lending. AAVE is one of these altcoins and one that has seen significant growth in recent months, leading to increased demand for an accurate AAVE price prediction for 2021 to 2025.

But AAVE isn’t just a way for people to lend cryptocurrency, it allows anyone in possession of digital assets to become a lender and earn passive income easily. But its innovative lending platform capabilities aren’t the only way that people make money from AAVE. In January alone, this digital asset gained over $500 per token in the space of just two months.

But are you wondering if it’s too late to start investing in AAVE? You’re not alone, many people are curious about whether investing in AAVE now is a good idea. I was one of those people until I began to use a range of factors to research the future price of AAVE such as:

  • Price history
  • The latest legislation 
  • Prediction strategies 
  • Expert analysis
  • New investors

By analyzing all of these factors, I was able to find out that there’s never a bad time to invest in AAVE. For example, statistics from the leading trading platform of eToro tell us that sales of cryptocurrency have skyrocketed in the past few months, demonstrating that demand is very high.

But what does the future hold for investors who get on board now? Will it rise even further? Our AAVE price prediction aims to answer all. But first, let’s start with just what AAVE is and how it actually works.

What is the meaning of AAVE?

Developed in 2017 by a man named Stani Kulechov, Aave was originally launched as ETHLend, with the native token LEND, after an initial coin offering (ICO) raised $16.2 million.

The original idea of ETHLend was to develop a decentralized platform that would connect lenders and borrowers of digital currencies with each other and allow both to lend and borrow seamlessly in a decentralized environment. In 2020, the project was rebranded as Aave with a native token of AAVE.

Running on the Ethereum blockchain, Aave enables users to lend and borrow a wide varying range of different crypto assets. As a result, crypto lenders are able to earn passive income from the funds they give to borrowers. The way this works is simple but innovative.

“You don’t have control over the money in your bank account. That’s why the government hates Bitcoin and other blockchain-powered cryptocurrencies. Don’t forget that.”

― Olawale Daniel

Aave loans are made possible by a simple system that requires borrowers to deposit a collateral amount larger than the amount they wish to borrow. For example, if a user wishes to borrow $100 worth of Bitcoin, they must deposit the same amount in another cryptocurrency. In addition, all loans on the network are managed by smart contracts verified by third-party auditors.

The native token of AAVE offers lenders and borrowers additional benefits when it’s used on the Aave blockchain. Borrowing AAVE is free of fees, using it for collateral grants you a generous discount on transaction fees. What’s more, all holders of AAVE are granted voting rights over the Aave network, based on the amount they hold.

Frequently asked questions about AAVE

Do you still have questions about AAVE? Rest assured, before we get into the price prediction, next we’ll cover some frequently asked questions about AAVE to give you a better understanding of the original digital asset and its price potential.

Who uses AAVE?

AAVE is used by those wishing to borrow cryptocurrency to invest in businesses, projects, or otherwise. It’s equally used by lenders looking to loan their digital assets out in exchange for a stream of passive income.

How does AAVE gain value?

Like most cryptocurrencies, the value of AAVE is largely driven by speculation in its current state. As more people discover the wide range of its uses, its value grows. Due to its innovative nature and continuous growth of significant partnerships, support for AAVE is only expected to grow as cryptocurrencies become a more widely accepted alternative to fiat currencies. When it does, the value will likely grow in sync.

Can AAVE reach $1,000 per token?

Based on its recent price surges and innovative nature of being a platform with a growing userbase looking to make passive income and investments, it’s possible that AAVE could reach $1,000 per token in the long term.

Where do people buy, sell, and trade AAVE?

You can buy, sell, and trade AAVE from any reputable crypto trading platform. If you are a new investor, then we suggest using eToro. It’s safe, regulated, and beginner-friendly. The eToro interface is very simple to use, and it has an array of trading tools to allow you to trade safely.

Where do people buy, sell, and trade AAVE?

After hitting the crypto market in 2017, AAVE is a digital asset with fairly short price history. Where it gets interesting, is 2020. In November of that year, which featured a notable bull run of various cryptocurrencies. The price began to surge from $20 to $90 within the space of one month.

AAVE price history

AAVE Price Prediction Forecast 2021-2025

By January 2021, Aave passed the $100 resistance point. But it didn’t end there, the price just kept on rising. This innovative asset suddenly gained over $200 over the course of January and reached a price of $304.49.

Many people thought it couldn’t get any better than this incredible all-time high. That was until AAVE surged to $555.24 in February before it dropped back down to around $300. After a few months of stagnation, the price settled between $300 and $450 until another bull run saw the AAVE price rise to a new ATH.

On the 18th of May, the price of AAVE reached $643.07. But following the subsequent crash largely attributed to comments made by Elon Musk and the Chinese crypto crackdown, the price dropped down to $242.31. Will AAVE repeat its incredible gains in the near future? Let’s see what the experts have to say!

Expert analysis of the AAVE price prediction between 2021-2025

One of the best tools we can use to try and determine the potential future price of AAVE is to analyze the opinions of various crypto experts. Let’s delve into four estimated growth outlooks for various industry experts and analysts.

Trading Education

Overall, Trading Education is bullish on the AAVE price prediction. Based on AAVE continuing to build partnerships with influential organizations and persisting with being a unique model that retains a solid support base, they believe it has the potential to reach around $895 per token by the end of the year and a price of $4,600 by the year 2025.

Wallet Investor

WalletInvestor uses an algorithm-based forecast in an attempt to predict the future price of cryptocurrencies. When it comes to AAVE, they are also bullish but not as much as Trading Education. Over the long term, WalletInvestor predicts that the price of TRX could reach somewhere around $3166.320 by the end of 2025.

Digital Coin Price

DigitalCoinPrice is fairly bullish on its AAVE outlook and expects the price to gradually increase over the long term. DigitalCoinPrice predicts it to reach $360.46 by the end of 2021, $521.94 by the end of 2023, and finally, a figure of $774.39 by 2025.

Long Forecast

Another rather bullish expert analysis on EOS is LongForecast. They predict the price of AAVE in 2021 to potentially reach up to $216 by the end of the year. By the end of 2023, they expect it to reach $669. But they expect the price to drop to $217 by the year 2025.

So from over $360.46 in the short term and over $3,000 in the long term, the overall expert analysis on the future price of AAVE is overwhelmingly bullish with some potentially lucrative returns in store for investors. But what does the technical analysis tell us about the price potential of this innovative digital asset?

Technical analysis of the AAVE Price Prediction for 2021-2025

Now we move onto technical analysis to try and predict the future price of AAVE. This section will utilize powerful tools like the Japanese candlestick, chart patterns, and trading indicators. As well as giving traders the upper hand in day trading, they can enable us to discover long-term price predictions based on pure technicals when we assess longer time frames.

AAVE Price Prediction 2021 – 2022

Since the beginning of 2021, the price of AAVE skyrocketed by 178% from $88.32 to its current price of $245.67. It’s predicted that the AAVE price will rise an additional 87% in the second half of 2021 and it’s then expected to close the year at $331. A year-to-year change of +275%. 

AAVE Price Prediction 2022 – 2023

After starting the year at $331, it’s predicted that the price of AAVE will rise to $430 per coin in the first half of 2022, it’s then expected to gain $97 and finish the year at $527, which is a +115% gain on the current price.

AAVE Price Prediction 2023 – 2024

After starting 2023 at $527, AAVE is expected to rise to a figure of $622 midway through the year before going on the rise again and ending the year at $715 at an overall annual increase of 191% from the current price.

AAVE Price Prediction 2024 – 2025

After starting 2024 at $715, AAVE is expected to rise to $807 halfway through the year. The second half of 2024 is expected to see the price of AAVE end the year at a slightly lower price than the first half of 2024 at $898. That’s an overall annual increase of 266% on the current price.

Technical analysis tells us that the price of AAVE has the potential to reach up to and possibly beyond 255%. This data was provided by technical analysis from the Coin Price Forecast.

AAVE price prediction summary

In conclusion, AAVE has demonstrated its ability to become a dominant crypto lending platform. Based on its ever-growing customer base, innovative aspects, and recent price surges, this digital asset has the potential to become a very smart investment for those looking to invest in digital assets.

In the future, AAVE has many incredible goals. It hopes to become the leading decentralized autonomous organization (DAO) that will allow anyone to develop and deploy their own money market on the Ethereum blockchain. When these are realized and become succesful, the price could surge again.

Whilst many people can see the significant potential in AAVE, there is a significant number of people who are wondering where to invest in this innovative investment for the long term. The answer lies in a reputable and well-established trading exchange with access to vital trading tools like eToro.

Where to buy AAVE?

AAVE is available to buy and trade on eToro alongside 18 other cryptocurrencies. This is a well-established, highly regulated, and secure platform that has the potential to revolutionize your crypto trading. 

What’s more, is that eToro allows you to access their incredible array of trading tools such as the Stop Loss, Take Profit, and built-in charting software that all let you maximize your potential profits whilst ensuring safe trading practices that protect your hard-earned funds. Also, eToro offers Leverage Trading on AAVE. This allows you to multiply small amounts to become large powerful positions that drive massive profits.

“Plan your next move because every step contributes towards your goal.”

― Sukant Ratnakar, Quantraz

Overall, the financial situation, risk tolerance, and investment strategy of each person vary. AAVE is inherently volatile and the price can rise or drop at a moment’s notice, this brings advantages as it does risks.

Both of which are important to understand and weigh against your own investment goals and needs. Only invest money you can afford to lose and balance out the risky nature of crypto investment by building a diversified portfolio.

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Disclaimer – This content is for informational purposes only and is not investment advice. The trading of AAVE and other alternative cryptocurrencies has potential rewards, and it also has potential risks involved. Trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.