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Aave Price Prediction 2024: AAVE Price Analysis

Last Updated June 26, 2024 6:21 PM
Giuseppe Ciccomascolo
Last Updated June 26, 2024 6:21 PM

Key Takeaways

  • Aave recently announced its V3 upgrade.
  • The Aave network is designed to allow people to both make and take loans in crypto.
  • Can AAVE respond well to the news or will it continue its recent downturn? 
  • One AAVE price prediction says it can reach $235.85 next year.

Aave had a strong end to 2023. The token’s investors will be paying attention after the Aave community approved  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, 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.

The AAVE token went back above $100 in late February. On June 26, 2024, Aave was worth $90.96.

Aave did not respond to a request for comment.

Let’s take a look at our AAVE price prediction. We’ll also examine the AAVE price history, and talk a little about what AAVE is and what it does.

Aave Price Prediction

Let’s examine some of the Aave price predictions CCN.com made on June 26, 2024. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate.

Minimum AAVE Price Prediction Average AAVE Price Prediction Maximum AAVE Price Prediction
2024 $82.11 $187.04 $200.33
2025 $196.46 $228.77 $235.85
2030 $617.16 $656.94 $684.70

Aave Price Prediction for 2024

If the positive momentum continues and AAVE breaks above its moving averages, it could reach targets between $82.11 and $200.33 by the end of 2024, with the average price set at $187.04.

Aave Price Prediction for 2025

Technical analysis suggests a potential increase for AAVE in 2025. The minimum Aave price expected for 2025 is $196.46 while the maximum one is $235.85. In the middle, it may reach $228.77.

Aave Price Prediction for 2030

Based on technical analysis, the AAVE token may reach a maximum level of $684.70 at the beginning of the next decade, while, in the worst scenario, it may go to $617.16. The average expected price is $656.94.

Aave Price Analysis

Aave is demonstrating robust growth within a rising trend channel over the medium to long term, reflecting growing optimism among investors and suggesting the potential for continued price increases.

However, a head and shoulders pattern is currently forming, which could indicate a potential reversal.

Aave price analysis
Aave price analysis. | Credit: Giuseppe Fabio Ciccomascolo/Investtech

A decisive break below the support level of 79.97, particularly if accompanied by an increase in trading volume, would signal a further decline in price. The cryptocurrency currently has support at 82.00 and faces resistance at 114.00..

Aave Price Performance Comparisons

Current Price One Year Ago Price Change
Aave $90.96 $64.9301 +40%
dYdX $1.37 $2.3868 -43%
Compound $48.61 $42.1052 +35%
Chainlink $14.17 $6.1991 +129%

Advantages and Disadvantages of Aave

CCN.com‘s Senior Research Analyst Toghrul Aliyev made a deep dive into 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. In a deficit event, up to 30% of staked AAVE 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 and 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 is completed in a single transaction without needing approvals or having to withdraw supplied liquidity from the pool.
  • Multiple Rewards System: Aave lets users earn and claim multiple types of rewards for lending, borrowing, and staking. Users accumulate rewards in different tokens based on participation. The system lets users 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 the amount 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

Aave price history
Aave price in 2023 and 2024. | Credit: CoinMarketCap

 

Time period Fantom price
Last week (June 19, 2024) $86.6402
Last month (May 26, 2024) $110.5814
Three months ago (March 26, 2024) $127.07
One year ago (June 26, 2024) $64.9301
Launch price (October 5, 2020) $52.6750
All-time high (May 19, 2021) $629.23
All-time low (November 4, 2020) $28.07

Who Owns the Most AAVE Tokens?

On June 26, 2024, a wallet containing staked AAVE held 17.09% of the token’s supply.

Richest AAVE Wallet Addresses

As of June 26, 2024, the five wallets with the most AAVE were

  • 0x4da27a545c0c5b758a6ba100e3a049001de870f5. This wallet held 2,735,088 AAVE, or 17.09% of the supply.
  • 0xba12222222228d8ba445958a75a0704d566bf2c8. This wallet held 1,052,457 AAVE, or 6.58% of the supply
  • 0xa700b4eb416be35b2911fd5dee80678ff64ff6c9. This wallet held 1,023,783 AAVE, or 6.40% of the supply.
  • 0x25f2226b597e8f9514b3f68f00f494cf4f286491. This wallet held 816,089 AAVE or 5.10% of the supply.
  • 0x4a49985b14bd0ce42c25efde5d8c379a48ab02f3. This wallet held 790,366 AAVE, or 4.94% of the supply.

Aave Supply and Distribution Fact Box

Supply and distribution Figures
Total supply 16,000,000
Circulating supply (as of June 26, 2024) 14,852,566 (92% of total supply)
Holder distribution Top 10 holders owned 55% of maximum supply as of June 26, 2024

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.”

What Is Aave?

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.  Rebranding the following year, the system was an attempt 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 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 pays 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. 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 did well while the market rallied, 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 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.

Aave Attention Tracker

Aave Google search volume
Aave Google search volume. | Credit: Google

Here is a chart for Aave Google search volume for the past 90 days. This represents how many times the term “Aave” has been Googled over the previous 90 days.

FAQs 

How many AAVE are there?

On June 26, 2024, there were 14.9 million AAVE in circulation out of a total supply of 16 million.

Will AAVE reach $1,000?

It could do, but if it does, it will happen in the next decade.

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.