Aave Price Prediction – Aave Forecast 2021, 2022, 2025 & 2030

Fact Checked by Gary McFarlane

The scope of decentralized finance is enormous, thanks to platforms such as Ethereum offering functionality for smart contracts. One of the most prominent DeFi protocols is Aave, who aim to be the market leader when it comes to borrowing and lending cryptocurrency.

In this article, we’ll discuss our Aave Price Prediction comprehensively. We’ll cover things such as what Aave is and where the current Aave price could go before highlighting where you can invest in Aave – with no commissions!

aave
aave

Aave (AAVE)

Price
$ 236.00

Aave Price Prediction 2021 to 2022

Our Aave prediction 2021 uses various types of analysis, such as fundamental and technical, to arrive at price projections that are as accurate as possible. If you’re looking for a brief overview of our Aave stock forecast, then the bullet points below present our findings for the months that lie ahead:

  • One Month – The broader cryptocurrency market seems to be showcasing some bearish momentum at the time of writing, with the Aave price live following suit. We estimate that there is likely scope that Aave will head down to the support level at $220 within the next month.
  • Three Months – Should Aave reject this support level, the price will likely begin heading back upwards. A price target of $500 within three months would be a foreseeable target for Aave.
  • Start of 2022 – Assuming the market recovers well and ends the year strongly, our Aave forecast projects that this coin could head back to May’s highs. This would give Aave a valuation of $640.

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Aave Price History – the Story of 2021 So Faraave logo

If you were to invest in Ethereum (ETH), the chances are that you’ll have heard of the term ‘Decentralized Finance’ or ‘DeFi’. This area of finance is garnering much attention due to how innovative it is – with Aave leading the way within the sector. This section will detail what Aave is and how it works before highlighting how the Aave price reached this level.

Aave is what’s known as a decentralized finance protocol, which is an autonomous software program that can perform specific tasks. The Aave protocol is built on the Ethereum blockchain and utilizes ERC20 tokens, Ethereum’s standard for creating tokens. Essentially, Aave offers a platform for crypto-users to borrow and lend digital currencies seamlessly – without the need for an intermediary.

Through smart contracts, Aave coin can allow users to borrow and lend without requiring a credit check. To receive a loan, users must provide collateral in the form of another cryptocurrency. For example, if you wanted to borrow $1000 of Aave, you’d have to deposit $1000 worth of another supported cryptocurrency. This process acts as insurance in case you are unable to pay back the loan.

aave protocol

Aave currently supports various tokens for lending and borrowing, such as Tether, DAI, Chainlink, Maker, and Uniswap. The way that Aave can operate without the middleman is through the use of ‘liquidity pools’. These pools are essentially large reserves of cryptocurrency that loans are drawn from, with the funding being provided by other Aave lenders. In return for lending their crypto to the pools, users are compensated with interest payments – pools that require more money have larger interest rates attached to them.

When you invest in Aave, you will be investing in the protocol’s native currency – the AAVE token. This token can be loaned and borrowed on the platform with no fees and is also used as a governance token, meaning that holders can vote on the direction of the platform.

aave price chart

The Aave price began making waves in early 2021, as the price rose 717% between January and May. Price reached an all-time high of $661.69 on May 18th, according to CoinGecko, before experiencing a massive value decrease. This decrease resulted from regulatory decisions in China related to Bitcoin (BTC), which affected the broader crypto market drastically.

Since late June, the Aave price has been gradually climbing once more. The Aave price today is $322, which is a decrease of 51% from May’s highs. However, this still represents an increase of 291% since the turn of the year, highlighting just how much this altcoin has grown.

Aave Price Forecast

Now that you understand what Aave is and its price history, let’s turn our attention to the price chart. Much like when you buy Bitcoin, it’s crucial to analyze the factors that affect the Aave price before investing. With that in mind, this section covers the technical and fundamental aspects of our Aave prediction.

Technical Analysis

As you can see from the price analysis below, the Aave price is in a clear uptrend – higher-highs followed by higher-lows. Although this tends to be a bullish signal, Aave has struggled around the $416 region, which looks to be a strong resistance level. Price has been rejected from here five times since May 2021, with the most recent rejection only a few days ago.

aave technical analysis

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Right now, the Aave price is testing the trendline that holds the price up. If this trendline is broken, we’ll likely head down to the $205 range, which has proved to be strong support in the past. The lowest support level would be at $175, which the price rebounded from in June 2021.

Although this may be seen as a negative, it can actually be seen as a positive. If our Aave forecast is proven correct and the price does head down once more, it will provide a better level to invest at. Our analysis still predicts that Aave could return to May’s highs by early 2022, so if this were to occur, it would allow for some attractive returns to be made.

Fundamental Analysis

According to CoinMarketCap, Aave currently has a market cap of $4.2 billion. This makes it the 36th largest cryptocurrency globally, behind the likes of Bitcoin, Ethereum, Cardano, and Tether. The Aave ecosystem has a total value locked (TVL) of over $13 billion, highlighting how much the platform has grown since its launch.

One great thing that goes in Aave’s favour is that it’ll likely appeal to institutional investors before long due to the platform’s first-mover advantage. Due to DeFi being relatively new, substantial institutional companies are still hesitant to use protocols such as Aave as they are still seen as risky. However, if Aave continues to increase assets and build a trustworthy reputation, we’ll likely see institutional money flow in – leading to increases in the Aave price.

Overall, if you were to buy Aave, it’s likely that you’ll have to have a long-term outlook. GAS fees on the Ethereum platform are still relatively high, although these are rumoured to be fixed with ETH 2.0. Time will tell whether this happens, so be patient and do your due diligence!

Aave Price Prediction 2025 – Long Term Outlook

When investing in cryptocurrency, it’s essential to have a long-term investment horizon. The crypto market is inherently volatile, so short-term price moves are often hard to predict. Furthermore, due to DeFi’s growing nature, nobody knows just how large this area of finance could become.

Aave offers much higher interest rates than banks offer, making the platform incredibly appealing for investors. This factor will likely become more prevalent in the years ahead as investors move from traditional FIAT investments into crypto. Banks and other financial companies may even begin investing in crypto, leading them to require a place where they can generate a consistent positive return on their holdings – such as Aave!

aave price prediction 2021

Furthermore, Aave’s Flash Loans service offers up a great way to profit from arbitrage opportunities. This service is unique to the DeFi sector and will be one of the main things that draw investors to the Aave platform. Thus, the future looks exceptionally bright for this token.

In the future, our Aave price prediction 2025 sees the coin make some great returns from current levels. Although Aave may go down over the short term, it’s essential to ride out the volatility. With that said, our Aave price prediction sees the token being worth upwards of $1000.

aave market cap

In addition, our Aave price prediction 2030 is similarly bullish. The scope of DeFi is immense, and once larger companies begin to become involved, it’ll only grow even more. Due to this, we believe that the Aave token could be valued at $1500 by 2030.

Aave Price Chart

As you can see from our Aave prediction, we are very bullish on this token. Data gathered from DefiPulse notes that there is already $85.4 billion of assets locked into DeFi protocols already, which is incredible given that this area of finance did not exist a few years ago. If this figure continues to grow, it’ll have a positive effect on the Aave price.

As we noted earlier, there is a possibility that Aave goes down once more in the short term. If this happens, don’t panic! The overall outlook for Aave is still extremely promising, and due to the volatility of the cryptocurrency market, this price action is not uncommon. If you were to look at the Aave price chart, you’d see that periods of bearish momentum are often followed by bull runs.

etoro aave price chart

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Overall, an investment in Aave should be more long-term in nature. It’ll be likely that regulators will take a look at the DeFi space and may implement some rules that could hamper any upwards momentum. However, times are changing, and Aave is at the forefront of the new way of doing things, making this an exciting period for crypto investors.

Where to Invest in Aave

If you are looking to buy cryptocurrency, you’ll need to create an account with a reputable broker or cryptocurrency exchange. Nowadays, there are many platforms to choose from, each offering its own unique pros and cons. Due to this, it may be overwhelming at first to figure out where to start.

To streamline the process, we’ve conducted the research and analysis and found that eToro offers the best place to buy Aave. First and foremost, eToro has a highly safe reputation thanks to regulation from the FCA, ASIC, and CySEC. These regulatory bodies ensure that eToro provides users with the highest levels of security for their capital and personal information.

One of the main reasons we recommend eToro is because they utilize a 0% commission structure for trading. This means that you avoid all of the hefty transaction fees that some other platforms charge, making the investment process with eToro very cost-effective. In addition, eToro doesn’t charge any deposit fees or monthly account fees, making them one of the most appealing CFD brokers for crypto traders.

etoro crypto trading

Users can deposit from as little as $50 with eToro, using a credit/debit card, bank transfer, or e-wallet. eToro even accepts PayPal, which adds a significant level of accessibility to the platform. Notably, you can even begin on eToro’s free demo account if you wish, which is ideal for beginner traders.

Finally, eToro offers a built-in crypto wallet that is used to store your holdings. This wallet has advanced encryption software within it, ensuring your holdings are safe from cyberattacks. What’s more, you can even exchange one crypto for another directly within the wallet – saving you the hassle of exchanging crypto for USD and then back again!

Aave Price Prediction – Conclusion

In summary, our Aave forecast has discussed this token in great detail, highlighting what it is and how it works. As we have expressed throughout this guide, the realm of DeFi is growing at a rapid rate, and Aave is leading the pack when it comes to this area. As the months and years pass, we can expect this area of finance to snowball – which is excellent news for the Aave price overall.

So, if you’d like to buy Aave today, we’d recommend using eToro. As noted earlier, eToro charge 0% commissions when you trade crypto and deposits are accepted from only $50. What’s more, eToro is highly regulated by many top entities, ensuring all users are protected when trading.

 

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About Connor Brooke PRO INVESTOR

Connor is a Scottish financial expert, specialising in wealth management and equity investing. Based in Glasgow, Connor writes full-time for a wide selection of financial websites, whilst also providing startup consulting to small businesses. Holding a Bachelor’s degree in Finance, and a Master’s degree in Investment Fund Management, Connor has extensive knowledge in the investing space, and has also written two theses on mutual funds and the UK market.