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.
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.
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.
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.
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
Messari found that Aave had
Messari also found that Aave
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%.
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 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.
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.
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.
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.
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.”
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.
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.
On September 19 2023, there were 14.5 million AAVE in circulation out of a total supply of 16 million. It could do, but if it does, it won’t be for a while. DigitalCoinPrice says the token could reach four figures in 2032. Keep in mind that its highest-ever price, $666, which it reached in May 2021, is considerably less than that. 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.
How many AAVE are there?
Will AAVE reach $1,000?
What is AAVE used for?
On September 19 2023, there were 14.5 million AAVE in circulation out of a total supply of 16 million.
It could do, but if it does, it won’t be for a while. DigitalCoinPrice says the token could reach four figures in 2032. Keep in mind that its highest-ever price, $666, which it reached in May 2021, is considerably less than that.
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.
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)?
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.