Key Takeaways
Aave had a strong end to 2024. The token’s investors will be paying attention after the Aave community approves its V3 upgrade.
In 2023, the platform launched its GHO stablecoin, a crypto designed to be worth $1 at all times. The initial launch saw a price spike, but then the market corrected itself, making things much the same as before GHO came out.
Interesting times were ahead in August and September when a fork of AAVE, Seamless Protocol , came out.
The AAVE token went back above $100 in late February. There were some fluctuations before a notable climb late in the year, with the crypto breaking past $300 for the first time in more than three years.
On Jan. 21, 2025, following the news that newly inaugurated US President Donald Trump’s World Liberty Financial decentralized finance (DeFi) platform had bought more than $6 million worth of crypto, AAVE was worth about $343.
Let’s examine our AAVE price prediction. We’ll also examine the AAVE price history and discuss what AAVE is and what it does.
Let’s look at the AAVE price predictions made by CCN on Jan. 21. The predictions will use the wave count method. We will add and remove 20% to the final targets to develop our minimum and maximum AAVE price predictions.
Minimum AAVE Price Prediction | Average AAVE Price Prediction | Maximum AAVE Price Prediction | |
---|---|---|---|
2025 | $155 | $194 | $233 |
2026 | $138 | $174 | $210 |
2030 | $396 | $495 | $594 |
The most likely wave count suggests that AAVE is in wave four of a five-wave increase (yellow).
Giving wave three 2.61 times the length of wave one leads to a high of $323.80. Then, the 4.61 extension of wave one leads to a high of $534.91 for the top of wave five.
Using the Fibonacci Time Zone tool suggests that the high will be reached in September.
A lengthy correction could begin after the high is reached, similar to the one after the all-time high price.
During these projected upward and downward movements, the wave count gives a target of $194 and $174 for the end of 2025 and 2026, respectively.
Finally, we will use the daily rate of increase for the past two years to predict the AAVE price at the end of 2030.
Since January 2023, AAVE has increased at a daily rate of 0.11%. Projecting this increase until the end of 2030 leads to an AAVE price prediction of $495.
The wave count method gives an AAVE price prediction range of $155 to $233 for the end of 2025.
The wave count method gives an AAVE price prediction range of $138 to $210 for the end of 2025.
Using the daily rate of increase since launch, we arrive at an AAVE price prediction range between $396 and $594 for the end of 2030.
AAVE has struggled since creating four successive weekly bullish candlesticks in November 2024.
The price reached a high of $399, seemingly breaking out from the critical horizontal and Fibonacci resistance at $362. However, the rally could not be sustained, and AAVE created several long upper wicks (black circles) that fell back below the resistance.
Since then, the price has made several unsuccessful attempts at breaking out, also doing one this week.
Despite failing to break out, technical indicators do not show any apparent weakness. The Relative Strength Index (RSI) is still increasing alongside its support trend line and has not generated any bearish divergence yet.
The Moving Average Convergence/Divergence (MACD) has created successive lower momentum bars but is still positive and has not generated any bearish divergence.
So, the weekly time frame AAVE analysis gives a bullish prediction, pointing to an eventual breakout.
The AAVE price prediction for the next 24 hours is bullish. AAVE will likely break out from the long-term resistance at $360 and increase toward $400.
Therefore, the daily time frame chart suggests AAVE will continue declining, possibly reaching the ascending support trend line at $260.
The Average True Range (ATR) measures market volatility by averaging the largest of three values: The current high minus the current low, the absolute value of the current high minus the previous close, and the absolute value of the current low minus the previous close over a period, typically 14 days.
A rising ATR indicates increasing volatility, while a falling ATR indicates decreasing volatility. Since ATR values can be higher for higher-priced assets, normalize ATR by dividing it by the asset price to compare volatility across different price levels.
On Jan. 21, 2025, Aave’s ATR was 32.45, suggesting average-to-high volatility.
The Relative Strength Index (RSI) is a momentum indicator traders use to determine whether an asset is overbought or oversold. Movements above 70 and below 30 show over and undervaluation, respectively. Movements above and below the 50 line also indicate if the trend is bullish or bearish.
On Jan. 21, 2025, the Aave RSI was 57, indicating bullish conditions.
The Total Value Locked (TVL) to market cap ratio (TVL ratio) measures the valuation of a decentralized finance (DeFi) project by comparing its market capitalization to the total value of assets locked in its smart contracts. This ratio shows the project’s utilization and links the platform’s health to locked asset value.
A ratio above 1.0 indicates overvaluation because the market cap exceeds the value of assets used in the platform. A ratio below 1.0 indicates undervaluation because the market cap is lower than the value of locked assets.
AAVE MCap/TVL | Credit: DeFiLlama
On Jan. 9, the Aave TVL ratio was 0.24, suggesting undervaluation.
The CCN Strength Index combines an array of advanced market signals to measure the strength of individual cryptocurrencies over the last 30 days.
Every day, it assigns a strength score, ranging from 0 to 100, to the top 500 assets by market capitalization on CoinMarketCap, focusing on both trend direction and the intensity of price movements.
The index dynamically adapts to rapid changes. For example, an asset experiencing a 100% increase within a short timeframe would see a sharp jump in its score to reflect the intensity of the rise.
However, should that asset stabilize at this new price level, the score will gradually taper down and align with the dampened momentum as the movement normalizes. The same principle applies to rapid declines: a sudden drop will spike the score downward, but the score will slowly adjust back up as volatility decreases.
On Jan. 21, 2025, Aave scored 30.7 on the CCN Index, suggesting weak momentum.
We looked at the Bitcoin price history and found the best times to buy AAVE.
Day of the Week | Wednesday |
Week | 3 |
Month | January |
Quarter | First |
CCN’s Senior Research Analyst, Toghrul Aliyev, investigated Aave. He found the following advantages and disadvantages.
Let’s now examine some of the key dates in Aave’s price history . While past performance should never be taken as an indicator of future results, knowing what the crypto has done can give us some much-needed context when making or interpreting an AAVE price prediction.
Time Period | Aave price |
---|---|
Last week (Jan. 14, 2025) | $300.28 |
Last month (Dec. 21, 2024) | $343.08 |
Three months ago (Oct. 21, 2024) | $159.48 |
One year ago (Jan. 21, 2024) | $98.53 |
Launch price (Oct. 5, 2020) | $52.68 |
All-time high (May 18, 2021) | $666.86 |
All-time low (Nov. 5, 2020) | $25.97 |
The market capitalization, or market cap, is the sum of the total number of AAVE in circulation multiplied by its price.
On Jan. 21, 2025, Aave’s market cap was $5.16 billion, making it the 30st-largest crypto by that metric.
On Jan. 21, 2025, one wallet held nearly 17.5% of AAVE’s supply.
As of Jan. 21, 2025, the five wallets with the most AAVE were
Supply and distribution | Figures |
---|---|
Total Supply | 16,000,000 |
Circulating supply (as of Jan. 21, 2025) | 15,048,904 (94.05% of total supply) |
Holder distribution | Top 10 holders owned 53.73% of the AAVE supply as of Jan. 21, 2025 |
Aave’s whitepaper says that the platform originally worked on a peer-to-peer (p2p) basis but switched to pool-based lending in 2020, with interest rates calculated by an algorithm.
It says: “Lenders provide liquidity by depositing cryptocurrencies in a pool contract. Simultaneously, the pooled funds can be borrowed by placing collateral in the same contract. Loans do not need to be individually matched, instead they rely on the pooled funds, as well as the amounts borrowed and their collateral.”
One of the biggest concepts in the crypto world is decentralized finance (DeFi). This is the idea that people can access traditional financial services without going through centralized institutions, such as banks. The Aave crypto lending platform is just one of many examples of a DeFi network.
Aave —the Finnish word for ghost—was founded as ETHlend in 2017 by. Rebranded the following year, the system attempted to create a transparent place where people could make and take out loans.
The AAVE token powers the Aave network, which is based on the Ethereum blockchain.
On the Aave system, people can lock their crypto into liquidity pools, which pay interest. People who want to take out loans, usually in stablecoins, can use the crypto they hold as collateral.
The AAVE cryptocurrency pays interest to people who deposit their crypto in the liquidity pools. Holders can also vote on network operations changes, such as deciding which cryptos can be used for loans. People can also buy, sell, and trade it on exchanges.
Because Aave is based on Ethereum, AAVE is a token, rather than a coin. You might see references to such things as an Aave coin price prediction, but these are wrong.
It is hard to say. AAVE has done well lately, but we don’t know how long things will last.
On the other hand, Aave is a pretty reputable, steady, crypto lending platform. It has managed to avoid getting caught up in its own crises, even if it is not immune to what the overall market does.
As always with crypto, you will have to do your own research.
No one really knows. While the price predictions are broadly optimistic in the long run, price predictions are very often wrong. You should also remember that prices can and do go down and up.
Before investing in Aave, you will need to do your own research on AAVE and other similar coins and tokens, such as KAVA. You should never invest more money than you can afford to lose.
It could do, but if it does, it won’t reach four figures until at least the 2030s. The AAVE crypto supports the Aave crypto lending platform, and can be staked to help the system’s liquidity. It can also be bought sold and traded on exchanges.Will AAVE reach $1,000?
What is AAVE used for?
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.