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Aave Price Prediction 2025: Struggles Persist Despite High-Profile Donald Trump Buys

Last Updated
Peter Henn
Last Updated
By Peter Henn
Edited by Ryan James

Key Takeaways

  • The Aave network is designed to allow people to make and take crypto loans.
  • Donald Trump’s WLFI bought $6 million worth of AAVE in early 2025. 
  • Our AAVE price prediction says it could fall to $155 next year.

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.

Aave Price Prediction

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.

AAVE/USDT Weekly Chart
AAVE/USDT weekly chart | Credit: Valdrin Tahiri/TradingView 

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.

AAVE Price Prediction for 2025

The wave count method gives an AAVE price prediction range of $155 to $233 for the end of 2025.

AAVE Price Prediction for 2026

The wave count method gives an AAVE price prediction range of $138 to $210 for the end of 2025.

AAVE Price Prediction for 2030

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 Price Analysis

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. 

AAVE/USDT Weekly Chart
AAVE/USDT weekly chart | Credit: Valdrin Tahiri/TradingView 

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.

Short-Term AAVE Price Prediction

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.

Aave Average True Range (ATR): AAVE Volatility

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.

AAVE ATR
AAVE ATR | Credit: Peter Henn/TradingView 

On Jan. 21, 2025, Aave’s ATR was 32.45, suggesting average-to-high volatility.

Aave Relative Strength Index (RSI): Is AAVE Overbought or Oversold?

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.

AAVE RSI
AAVE RSI | Credit: Peter Henn/TradingView 

On Jan. 21, 2025, the Aave RSI was 57, indicating bullish conditions.

Aave Market Cap to TVL Ratio

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 

AAVE MCap/TVL
AAVE MCap/TVL | Credit: DeFiLlama 

On Jan. 9, the Aave TVL ratio was 0.24, suggesting undervaluation.

CCN Strength Index

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.

  • 0 to 24: Assets exhibit significant weakness, showing signs of sustained downtrend behavior.
  • 25 to 35: The price tends to move within stable bounds with minimal volatility.
  • 36 to 49: Assets begin a stable uptrend without strong surges.
  • 50 to 59: Consistent growth with moderate price advances, building momentum.
  • 60+: Sharp price movements and high demand indicate more substantial volatility and trend shifts.

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.

AAVE CCN Index
AAVE CCN Index | Credit: CCN

Best Days and Months to Buy Aave

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

Aave Price Performance Comparisons

Current Price One Year Ago Price Change
Aave $343 $98.53 +248%
Avalanche $35.40 $36.67 -3.46%
Compound $78.75 $57.26 +37.5%
Chainlink $24.25 $15.88 +52.7%

Advantages and Disadvantages of Aave

CCN’s Senior Research Analyst, Toghrul Aliyev, investigated Aave. He found the following advantages and disadvantages.

Advantages of Aave

  • Multi-Chain Support and Sufficient Liquidity: Aave operates on multiple networks, including Ethereum, Base, Arbitrum, Avalanche, Optimism, Polygon, Metis, Gnosis, BNB Chain, and Scroll, with enough liquidity on each.
  • Arbitrage Opportunities: Flash loans let users borrow large amounts of funds without collateral, so long as the loan is repaid within a single transaction block. Users can arbitrage, refinance, and swap collateral efficiently and quickly, letting them profit without significant upfront capital.
  • Safety Module: The Safety Module protects against potential protocol shortfalls. Users stake AAVE into the module and receive incentives in return. Up to 30% of staked AAVE in a deficit event can cover the shortfall.
  • Decentralized Governance: Aave gives AAVE holders control of its admin keys. Users make collective decisions, ensuring transparency and decentralization​.
  • Flexible Interest Rates: Aave offers borrowers stable, variable interest rate options. Stable rates provide predictability and protection against volatility, while variable rates offer lower costs during favorable conditions​.
  • Efficiency Mode (eMode): Aave’s eMode maximizes capital efficiency for borrowers when collateral and borrowed assets have correlated prices. Users can borrow more against collateral, enabling high-leverage trading, efficient yield farming, and diversified risk management. For example, a user supplying DAI can borrow USDC with higher borrowing power due to the correlated prices.​
  • Repaying with aTokens: Aave lets users repay borrowed assets using aTokens if the underlying asset is locked in Aave’s liquidity pool. For example, a user with DAI debt who holds aDAI can repay directly with aDAI. The transaction is completed without needing approvals or withdrawing supplied liquidity from the pool.
  • Multiple Rewards System: Aave lets users earn and claim multiple rewards for lending, borrowing, and staking. Users accumulate rewards in different tokens based on participation. The system enables users to claim all accrued rewards in a single transaction.

Disadvantages of Aave

  • Frequent Security Issues: Aave has experienced multiple security issues, including bridge-related vulnerabilities , flash loan exploits , and reentrancy attacks . Users have lost funds in the past and may lose more in future incidents if similar problems arise again.
  • Variable Interest Rate Volatility: Due to market conditions, variable interest rates for lending and borrowing on Aave can change significantly, impacting lenders’ returns and borrowers’ costs.
  • Liquidity Risks: During periods of high demand or market stress, users might struggle to withdraw their assets due to insufficient liquidity in the pools. Too many users trying to withdraw funds simultaneously can lead to delays and potential financial loss. The lack of liquidity might force users to sell their assets at a lower price or accept unfavorable conditions, reducing their overall returns.
  • Over-Collateralization Requirement: Aave requires users to provide collateral worth more than they wish to borrow. Over-collateralization reduces liquidity, limits the availability of assets for other investments, and restricts their effective leverage.
  • Risk of Liquidation: If the price of the collateralized asset drops significantly, users may face liquidation. Liquidation forces the sale of the collateral at a reduced price and causes substantial financial losses for the user.

Aave Price History

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.

Aave Price History
AAVE price history for the last 12 months | Credit: CoinMarketCap 
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

Aave Market Cap

The market capitalization, or market cap, is the sum of the total number of AAVE in circulation multiplied by its price.

AAVE Market Cap
AAVE market cap for the last 12 months | Credit: CoinMarketCap 

On Jan. 21, 2025, Aave’s market cap was $5.16 billion, making it the 30st-largest crypto by that metric.

Who Owns the Most AAVE Tokens?

On Jan. 21, 2025, one wallet held nearly 17.5% of AAVE’s supply.

Richest AAVE Wallet Addresses

As of Jan. 21, 2025, the five wallets with the most AAVE  were

  • 0x4da27a545c0c5b758a6ba100e3a049001de870f5. This wallet held 2,775,257 AAVE, or 17.35% of the supply.
  • 0xf977814e90da44bfa03b6295a0616a897441acec. This wallet, listed as Binance, held 1,260,369 AAVE, or 7.88% of the supply.
  • 0xa700b4eb416be35b2911fd5dee80678ff64ff6c9. This wallet held 1,105,734 AAVE, or 6.91% of the supply.
  • 0x494aa25fa055d370424ed9db3839e76ee3e9e945. This wallet held 790,366 AAVE, or 4.94% of the supply.
  • 0xba12222222228d8ba445958a75a0704d566bf2c8. This wallet held 753,452 AAVE or 4.71% of the supply.

Aave Supply and Distribution

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

From the Aave 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, 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.”

What Is Aave?

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.

How Aave Works

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. 

Is Aave a Good Investment?

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.

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 and up. 

Should I invest in Aave?

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.

 

FAQs 

How many AAVE are there?

On Jan. 21, 2025, just over 15 million AAVE were in circulation out of a total supply of 16 million.

Will AAVE reach $1,000?

It could do, but if it does, it won’t reach four figures until at least the 2030s.

What is AAVE used for?

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.

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.

Peter Henn

Peter Henn has been a journalist since 2005. In that time, he has written for a variety of publishers including the Mail on Sunday and the Daily Express. He has previously covered the world of cryptocurrency for Currency.com and Capital.com, and has also written for ECigIntelligence.com and CBD-Intel.com. A graduate of the University of Liverpool, he is based in the United Kingdom. His hobbies include music, horse racing and performance art.
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