The opinion of respected crypto experts and technical-based analysis combined predict that the crypto asset of AAVE has the potential to reach anywhere between $700 to over $3,160 between now and the year 2025. To avoid missing out on potential upcoming price surges in the cryptocurrency market, as well as our AAVE price prediction check out our easy-to-follow article on how to buy AAVE.
“Stack more Bitcoins every time the market dips, that is your eleventh commandment.”― Olawale Daniel
Table of Contents
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The concept of loaning money has been around for centuries. With the advent of cryptocurrencies, it was only a matter of time before other currencies came along that would lead the way in crypto flash loans in the Defi space. Built on the Ethereum network, the AAVE cryptocurrency is one of these altcoins and one that has seen significant growth in recent months, leading to increased demand for an accurate AAVE price forecast 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 2021 to 2025 aims to answer whether the AAVE price will make a profitable investment. 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 AAVE end 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.
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 crypto worth $100, 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.
Pros and cons of AAVE
Like any cryptocurrency, AAVE has its fair share of incredible pros and limiting cons. We always aim for transparency in our articles. So in this section, we’re going to cover some of the most important pros and cons of AAVE.
|✔️ AAVE has demonstrated resistance against the price patterns of Bitcoin.||❌ Strong rivalry from other cryptocurrency options with similar digital assets.|
|✔️ It’s provided significant returns on investment in 2021 alone.|
|✔️ Continuing to form an increasing number of significant partnerships.|
Frequently asked questions about AAVE
Do you still have questions about AAVE and decentralized finance? Rest assured, before we get into the AAVE price forecast, 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 with variable interest rates 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 various crypto trading platforms. 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 a 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
By January 2021, the AAVE protocol passed the $100 resistance point. But it didn’t end there, the price just kept on rising as trading volume increased. This innovative asset suddenly gained over $200 over the course of January and reached an average price of $304.49.
After AAVE’s sudden growth and increased trading volume, many people thought the price prognosis couldn’t get any better than this incredible all-time high. That was until AAVE hit $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 hit $643.07. But following the subsequent crash largely attributed to comments made by Elon Musk’s statement on digital currencies and the Chinese crypto crackdown, the price dropped down to its lowest price of the year at $242.31.
The current AAVE price today is around $400. Will AAVE repeat its incredible price changes in the near future and make another good investment on the cryptocurrency market? Let’s see what the experts have to say about the AAVE forecast!
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.
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 this uncollateralized loan option has the potential to reach a minimum price of around $895 per token by the end of the year and a maximum price of $4,600 by the year 2025.
Wallet Investor uses an algorithm-based forecast in its latest long-term forecast of AAVE. When it comes to the predicted data around AAVE coins, they are also bullish on their market sentiment but not as much as Trading Education. Over the long term, Wallet Investor predicts that the price prediction AAVE coins could reach somewhere around $3166.320 by the end of 2025.
Digital Coin Price
DigitalCoinPrice is fairly bullish on its market sentiment for the AAVE cryptocurrency and in a rough estimate, it expects the price of the first uncollateralized loan option to gradually increase over the long term alongside many other virtual currencies. 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. Overall, they see this predicted price will make AAVE coins a good investment.
Another rather bullish expert analysis on EOS is LongForecast. In their average valuation of the forecast AAVE price, they predict the price of AAVE coin in 2021 to potentially reach up to $216 by the end of the year. By the end of 2023, they expect AAVE to reach $669. But they expect the prices to drop to $217 by the year 2025.
So from prices over $360.46 in the short term and a coin price of over $3,000 in the long term, the overall expert analysis on the future price of AAVE coin 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 coin. 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 coin 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 Predictions 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.
Price Prediction AAVE 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%.
AAVE price prediction summary
In conclusion, in both long term and short term, 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 the AAVE price, 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 and sell AAVE?
AAVE is available to buy and trade on eToro alongside 18 other decentralized finance 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 AAVE 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. Crypto market sentiment is volatile and the AAVE price is not guaranteed to be a profitable investment, so trading may not be suitable for all people. Anyone wishing to invest should seek his or her own independent financial or professional advice.