Key Takeaways

• The price of AAVE rose following the launch of the platform’s GHO stablecoin.
• The Aave network is designed to allow people to both make and take loans in crypto.
• Can AAVE maintain its momentum, or will it drop when the whales lose interest? 
• One AAVE price prediction says it can reach $218.96 in two years time.

The Aave crypto lending network token has been somewhat volatile in July 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, leading to things being much the same as they were before GHO came out. 

Interesting times were ahead in August and September as a fork of AAVE, called Seamless Protocol , came out. It remains to be seen what effect this will have on the crypto lending sector of which AAVE is a part.

But what is AAVE? How does Aave work? Let’s see what we can find out, and also examine some of the Aave price predictions that were being made as of September 19 2023.

Aave Price Prediction 

Let’s take a look at some of the Aave price predictions that were being made on September 19 2023.

We need to remind you here that price forecasts, especially when they are for something as potentially volatile as cryptocurrency, are highly likely to be wrong. It is also worth noting that many long-term crypto price predictions are made using an algorithm, which means they can change at a moment’s notice. 

First, CoinCodex  made a short-term Aave price prediction which suggested a small rise over the next month or so. The site said the token would trade at to $62.22 by September 24 before reaching $63.80 on October 18. The site’s technical analysis was bullish, with 21 indicators sending positive signals compared to just seven making bearish ones. 

Aave Price Prediction for 2023

 DigitalCoinPrice  argued AAVE  would reach $129.32 this year, while Bitnation  said it would get to $93.84. CoinPriceForecast , on the other hand, said the crypto would close 2023 at $65.36.

Aave Price Prediction for 2025

CoinPriceForecast said AAVE would drop to $60.57 by the end of 2025, while Bitnation had it rise to $218.96. DigitalCoinPrice said it would be worth $202.36 in two years time.

Aave Price Prediction for 2030

Looking at a more long-term AAVE price prediction, Bitnation said it would be worth $531.77 in 2030. DigitalCoinPrice suggested it could trade at $640.09 that year. CoinPriceForecast said the price would fall to $59.87 by the end of the first year of the next decade. 

Advantages and Disadvantages of Aave

Blockchain analytics company Messari recently released its quarterly report on Aave . In it, they outlined some key advantages and disadvantages of the blockchain.

The report said that Aave had

• $2.48 billion worth of outstanding loans, down from $8.07 billion year-on-year but up from $1.827 billion quarter-on-quarter.
• 5,382 daily users, up from 4,317 year-on-year but down from 8,180 quarter-on-quarter.
•  $2.5 million quarterly revenue, down from $8.9 million year-on-year but up from $2.1 million quarter-on-quarter.
• A net loss of $12.8 million, worse than $5.7 million the previous year and $8.6 million the previous quarter.

Advantages of Aave

Messari found that Aave had

• Done some encouraging work to prepare GHO for launch.
• Experienced growth in the amount of crypto deposited on the platform.
• Worked well to make voting more inclusive.

Disadvantages of Aave

Messari also found that Aave

• Had seen a quarterly drop in new users.
• Was perhaps a little to reliant on Ether (ETH) and Ethererum-related products as a source of collateral.
• Still had to fully recover from the market crashes of 2022.

AAVE Price History

Let’s now take a quick look at some of the Aave price history . While past performance should never be taken as an indicator of future results, knowing what the token has done in the past can give us some very useful context if we want to either make or interpret an AAVE price prediction. 

When AAVE first came onto the open market in October 2020, it was worth about $42. In early 2021, the token’s price rose with a flourishing market and, on 18 May that year, it reached an all-time high of $666.86. Things fell down after that, though and by the end of the year, it was worth $265.50.

After a positive 2021, things got worse in 2022. The token found itself at the mercy of a massively bearish market and was below $200 by the end of January.

There was a recovery in March, but a series of market crashes hit it hard, with it falling to less than $50 in June. Although the later summer saw it recover, the collapse of the FTX exchange was a blow and it closed the year at $51.98, an annual loss of more than 80%.

AAVE in 2023

So far, 2023 has been a bit more encouraging. The token rallied at the start of the year, breaking past $90 in February, but it has since slid down. The crash following the United States Securities and Exchange Commission (SEC) suing the Binance and Coinbase exchanges was a blow, though, and it sank to a low of $49.12 on June 15. 

The token has since made something of a recovery and, on July 10, it was worth about $72. The launch of GHO on July 15 saw it reach a high of $82.19 but things settled down. The downturn became a crash after Elon Musk’s SpaceX sold millions of dollars worth of Bitcoin, and AAVE fell to $51.57 on September 11. 

Since then, it has recovered and, on September 19 2023, it was worth about $63.75.

At that time, there were 14.5 million AAVE in circulation out of a total supply of 16 million. This gave the token a market cap of about $926 million, making it the 43rd-largest crypto by that metric. 

Aave Price Analysis

AAVE reached an all-time high in May 2021. Since then, it has been in a bear cycle.

Since June last year, the price has largely stagnated, with a lower limit of around $50 and and an upper one of about $70.

Looking at the above chart, we can see that investors seem to take an interest in AAVE every time it threatens to fall below $50. 

A bounce in September saw it recover by almost 25% and, at the time of writing, it is continuing to rise. This could mean that it could, potentially, break past $70 soon. 

If it does, we could easily be in AAVE’s next bull cycle. If it doesn’t, we can expect it to drop to around $50 again. There is some good news here, however. It is unlikely that it will fall below $50, because of how often the price has bounced back from this level since the summer of 2022. Also, it was at around that price that the previous bull cycle started. 

Is Aave a Good Investment?

It is hard to say. While the launch of GHO gave the token some impetus, it has fallen down since. This suggests that Aave may have not grabbed the attention of the crypto world in the way it wanted to.

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.

Will Aave go up or down?

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 as well as up. 

Should I invest in Aave?

Before you invest in Aave, you will need to do your own research, not only on AAVE but on other, similar, coins and tokens, such as KAVA. You will need to make sure you never invest more money than you can afford to lose.

From the Whitepaper

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, in the same contract, the pooled funds can be borrowed by placing collateral. Loans do not need to be individually matched, instead they rely on the pooled funds, as well as the amounts borrowed and their collateral.”

Aave (AAVE) Explained

One of the biggest concepts in the world of crypto is that of decentralized finance (DeFi). This is the idea that people can access traditional financial services without having to go 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 crypto entrepreneur Stani Kulechkov.  Rebranding the following year, the system was an attempt to create a transparent place where people could make and take out loans. 

The network, which is based on the Ethereum blockchain, is powered by its native token, AAVE.

How Aave Works

On the Aave system, people are able to lock their crypto into liquidity pools, which pay interest. People who want to take out loans, usually in stablecoins, can put in the crypto they hold as collateral. 

The AAVE cryptocurrency is used to pay interest to people who deposit their crypto in the liquidity pools. Holders are also able to vote on changes to the network’s operations, such as deciding which cryptos can be used for loans. It can also be bought, sold, and traded 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. 

FAQs 

Further reading

Hifi Finance Price Prediction 2023: What is Hifi Finance (HIFI)?

Chainlink Price Prediction 2023: What is Chainlink (LINK)?

Kaspa Price Prediction 2023: What is Kaspa (KAS)?

Disclaimer 

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.