Aave Price Prediction, will AAVE’s price hit $137.85?
Aave’s price at the same time last week was $85.09. It has moved by 1.70 % in the past week and is currently at $96.64. Infact, in the past 24 hours, AAVE has dumped by -1.42 %. There is a slight bearish sentiment in the crypto market. The long term sentiment, however, remains bullish and AAVE could hit $95.79 in 2024.
The total circulating supply of Aave as of writing this article was $14645046.00 and the marketcap of AAVE remains at $1,415,272,754
For some coins with little to no data points and inexistent historical data the model by default will show a positive price prediction. There is no way for our AI bot to decipher whitepaper, tokenomics and team integrity. The coin's price that you are about to see below can fall drastically depending on many factors, so please invest wisely after checking the team and project's whitepaper. This current price prediction is done by a machine crunching numbers and the model is still in the early beta stages. It should strictly not be taken as an investment advice. Although the best engineers are currently tweaking and updating the algorithm, no human has verified the price predicted below, so please use your discretion and make a decision wisely.
Aave (AAVE): An overview
Aave (AAVE) is a decentralized finance (DeFi) platform that enables users to lend, borrow, and earn interest on their crypto assets in a secure, non-custodial manner. The platform provides an innovative ecosystem of financial services that empower individuals to access and manage their digital assets with unprecedented ease and flexibility.
It was initially built on the Ethereum blockchain but has since expanded to multiple blockchains, including Decentraland, Fantom, Avalanche, Polygon, Harmony, and many more. The network is powered by its native ERC-20 token—AAVE, which has a maximum supply of 16 million. As of November 2023, 14.6 million tokens are in circulation.
The AAVE token serves several functions:
- Governance: Token holders become a part of the decentralized autonomous organization (DAO) that manages the entire network. The members of the DAO possess voting rights, which they can exercise to propose and vote on changes to the Aave platform.
- Collateral: The tokens can be used as collateral for loans on the platform. Users can deposit AAVE tokens, which can serve as collateral to borrow other cryptocurrencies.
- Transaction fees: AAVE tokens can be utilized to pay transaction fees on the platform, allowing users to reduce their transaction costs.
- Staking: Users can stake their AAVE tokens on the platform to earn rewards. Staking rewards are distributed based on the amount of AAVE tokens staked and the duration of the stake. These rewards incentivize users to hold their AAVE tokens, potentially increasing their value.
Aave employs a deflationary token model, which involves burning a portion of the protocol's fees and reducing the total supply of AAVE tokens over time. This model is intended to create scarcity and increase the value of AAVE tokens as demand grows.
How does Aave function?
Aave operates as a network of lending pools, allowing users to deposit their funds into a liquidity pool. The platform uses smart contracts to enable the lending and borrowing of cryptocurrencies without the need for intermediaries like banks. Aave supports numerous cryptocurrencies, including:
- Ether (ETH)
- Dai (DAI)
- Aave (AAVE)
- U.S. Dollar Coin (USDC)
- Tether (USDT)
- Bitcoin (BTC)
When users deposit assets into Aave, they receive an equivalent amount of aTokens (e.g., aDAI, aUSDC), which represent their share of the liquidity pool. aTokens are interest-bearing tokens pegged to the value of the deposited asset. As borrowers repay loans with interest, the interest is distributed to lenders, causing the value of aTokens to increase over time.
Users can also use their aTokens as collateral to borrow other cryptocurrencies. The amount they can borrow depends on the collateralization ratio. All loans in Aave are overcollateralized due to the high volatility of the cryptocurrency market.
The entire lending and borrowing process is automatically managed by smart contracts, including interest rates and repayment terms. These smart contracts ensure that the value of the collateral always exceeds the value of the loan and can automatically liquidate the collateral if the value falls too low.
Other than lending and borrowing, Aave offers two prominent features to its users:
Aave employs a unique system of flash loans that allows users to borrow large amounts of cryptocurrency without any collateral as long as the funds are repaid within the same transaction. This type of loan is designed for short-term, high-risk transactions that require immediate access to funds.
Flash loans also work by leveraging smart contracts. A user can initiate a flash loan by sending a transaction to the Aave protocol, which specifies the amount of the loan, the currency to be borrowed, and the destination of the funds.
If the transaction is successful, the loan is instantly granted to the user, who can use it for any purpose they choose. Flash loans are useful for various purposes, such as arbitrage opportunities, liquidations, and other types of financial transactions that require immediate access to funds.
Aave allows users to stake their tokens through a Safety Module. The Safety Module is a smart contract that holds a portion of the fees generated by the Aave protocol. These fees are used to purchase the platform's native token, AAVE, which is then staked in the Safety Module.
The purpose of the Safety Module is to act as a backstop for the Aave protocol. In the event of a shortfall in the protocol's reserves due to unexpected losses or other unforeseen circumstances, the Safety Module can be used to cover the losses and prevent a total loss of funds for users.
By staking AAVE tokens in the Safety Module, users can earn rewards in the form of additional AAVE tokens. The rewards are proportional to the amount of AAVE staked and the length of time it is staked.
Stani Kulechov founded Aave in 2017. The for-profit organization is located in Switzerland. It was earlier known as ETHLend and was built on the Ethereum blockchain. In 2018, ETHLend rebranded to Aave. The company conducted its initial coin offering (ICO) in November 2017 and managed to raise $16.2 million.
During the ICO, 1 billion tokens of AAVE's native cryptocurrency, initially called LEND, were distributed. Following the launch of the AAVE token, LEND was converted to AAVE at a 100:1 ratio, with ETHLend becoming a subsidiary of Aave.
Here is a timeline of Aave's journey:
- July 2020: Aave's system became the most active decentralized lending system on Ethereum, with $158 million in total deposits.
- October 2020: The platform launched its governance token—AAVE.
- December 2020: Aave officially launched Version 2 of its mainnet, featuring several network upgrades.
- February 2022: Lens Protocol—a decentralized social network protocol built on the Polygon network, was launched.
- March 2022: Aave V3 went live on the mainnet across six networks, which included a feature called Portal that allowed the platform to operate seamlessly across all blockchains.
- July 2022: Aave's community approved the launch of GHO, a decentralized, collateralized stablecoin.
- October 2022: Aave V3 was launched on the Polygon zkEVM testnet.
- January 2023: DeFi Protocol Aave V3 went live on the Ethereum mainnet.
- February 2023: GHO was launched.
- March 2023: Aave announced its plans to launch on Polygon's new zkEVM Layer 2 network. The proposal was sent for a formal on-chain vote.
- July 2023: The platform launched GHO on the Ethereum mainnet.
- August 2023: Aave V3 went live on Base.
- September 2023: The proposal to launch on Polygon's new zkEVM Layer 2 network passed with majority votes in favor of the deployment.
- October 2023: The GHO passport was launched as a pass to events.
AAVE Price Analysis
On the weekly chart, AAVE went through considerable ups and downs. While the bears were the dominant force, the bulls kept making strong efforts to reverse the market trajectory. At the time of writing, the token was trading at $89.83.
AAVE weekly chart
A consistent level of rejection and the peak resistance was established at $90.33, which was held up by the bears to prevent any upward price movements. In November 2022, the token suffered a major decline, which led to it grazing its lowest support for the analyzed time frame at $50.50. This low point was a reaction not only to the bearish sentiment engulfing AAVE but also to broader market trends that affected many cryptocurrencies at the time.
As 2023 commenced, a resurgence of buying interest signaled a potential shift in market dynamics, leading to a retest of the peak resistance level. This renewed bullish effort, however, faced challenges as the price fluctuations indicated a struggle to maintain upward momentum.
The end of February saw another decline, with the price descending to $70, a level that was subsequently fortified as resistance after a bearish attack pushed the price below it in May.
Entering June, the price approached its previous lowest support level, but a minor bullish rally spurred a brief ascension beyond $70. This rally, though, lacked the necessary impetus to mount a serious challenge to the peak resistance. As July concluded, the price receded below $70 once again.
Moving toward the end of the analysis period, AAVE demonstrated resilience with a bounce back from the support level of $61.36, surpassing the $70 mark and momentarily breaching the formidable $90.33 resistance. Nonetheless, the establishment of a sustained trend was still pending.
The volume indicator corroborated the price movements, with surges in trading volume accompanying price increases, suggesting that the price hikes had considerable backing. Conversely, volume diminished as the price declined, indicating a withdrawal of trading interest during bearish periods.
The Chaikin Money Flow (CMF) presented an optimistic picture in March, crossing above the zero line and peaking at 0.16 in April. This was indicative of buying pressure and capital inflows into AAVE.
The CMF sustained its position above the baseline until mid-July, although there was a dip in June. By mid-October, the CMF witnessed another upturn, finishing the period at 0.08, which implied that buying pressure was recovering, albeit not as robustly as earlier in the year.
The Awesome Oscillator (AO) fluctuated above and below the zero line throughout the year, reflecting the changing momentum within the market. The AO moved above zero between February and March, again in April, and then during the July-August period. It stood at 7.23 points at the close of October, suggesting a recent increase in bullish momentum.
Should you consider buying AAVE?
AAVE has exhibited variable investor sentiment and market momentum in the last year, as evidenced by volume, CMF, and AO indicators. Traders looking to enter the market might consider a buying range of $49 to $56.
However, initiating a position should likely be contingent upon confirmed momentum beyond $70. Furthermore, surpassing the peak resistance might signal a possible market reversal. Investors must remain vigilant for a consistent trend, given the market's history of pullbacks post-resistance tests.
Aave Price Prediction
Aave has had an eventful 2021. To simplify the latest AAVE price prediction, we have divided up the prediction by short term Aave price prediction and long term Aave price prediction. As of writing this article, AAVE had a trading volume of 108,624,112. Aave has gone up by 15.28% in the past 30 days.
According to our analysis in the short term, Aave price prediction for January 2024 shows the average price of AAVE at 79.82 and the highest possible price for January 2024 would be $85.41.
Further, according to our analysis in the long term, Aave price prediction for May 2024 shows the average price of AAVE at 81.77 and the highest possible price for May 2024 would be $87.49.
Aave's Short Term Price Prediction
|Date||Avg Price||Lowest Price||Highest Price|
|30 November 2023||$97.35||$90.54||$104.16|
|1 December 2023||$97.12||$90.33||$103.92|
|2 December 2023||$96.89||$90.11||$103.67|
|3 December 2023||$97.10||$90.31||$103.90|
|8 December 2023||$100.51||$93.48||$107.55|
|13 December 2023||$103.90||$96.63||$111.18|
|23 December 2023||$110.65||$102.91||$118.40|
Aave price prediction 30 November 2023: Aave's price for 30 November 2023 according to our analysis should range between $90.54 to $104.16 and the average price of AAVE should be around $97.35.
Aave price prediction 1 December 2023: Aave's price for 1 December 2023 according to our analysis should range between $90.33 to $103.92 and the average price of AAVE should be around $97.12.
Aave price prediction 2 December 2023: Aave's price for 2 December 2023 according to our analysis should range between $90.11 to $103.67 and the average price of AAVE should be around $96.89.
Aave price prediction 3 December 2023: Aave's price for 3 December 2023 according to our analysis should range between $90.31 to $103.90 and the average price of AAVE should be around $97.10.
Aave price prediction 8 December 2023: Aave's price for 8 December 2023 according to our analysis should range between $93.48 to $107.55 and the average price of AAVE should be around $100.51.
Aave price prediction 13 December 2023: Aave's price for 13 December 2023 according to our analysis should range between $96.63 to $111.18 and the average price of AAVE should be around $103.90.
Aave price prediction 23 December 2023: Aave's price for 23 December 2023 according to our analysis should range between $102.91 to $118.40 and the average price of AAVE should be around $110.65.
Aave's Long Term Price Prediction
Aave’s long term Price Prediction below is a look at AAVE’s future prospect with regards to price. Aave was last seen at $96.64, with a market cap of $1,415,272,754 and trading volumes of $108,624,112. AAVE’s price prediction is possible by analyzing historical price action, current developments and social sentiment from the community.
|Years||Avg Price||Lowest Price||Highest Price|
Aave price prediction 2023: Aave's price for 2023 according to our analysis should range between $91.90 to $137.85 and the average price of AAVE should be around $114.87.
Aave price prediction 2024: Aave's price for 2024 according to our analysis should range between $63.86 to $95.79 and the average price of AAVE should be around $79.82.
Aave price prediction 2025: Aave's price for 2025 according to our analysis should range between $68.53 to $102.80 and the average price of AAVE should be around $85.66.
Aave price prediction 2026: Aave's price for 2026 according to our analysis should range between $73.55 to $110.32 and the average price of AAVE should be around $91.93.
Aave price prediction 2027: Aave's price for 2027 according to our analysis should range between $78.93 to $118.39 and the average price of AAVE should be around $98.66.
Aave price prediction 2028: Aave's price for 2028 according to our analysis should range between $84.71 to $127.06 and the average price of AAVE should be around $105.88.
Aave price prediction 2029: Aave's price for 2029 according to our analysis should range between $90.90 to $136.36 and the average price of AAVE should be around $113.63.
Aave price prediction 2030: Aave's price for 2030 according to our analysis should range between $97.56 to $146.34 and the average price of AAVE should be around $121.95.
Aave price prediction 2031: Aave's price for 2031 according to our analysis should range between $104.70 to $157.04 and the average price of AAVE should be around $130.87.
Aave price prediction 2032: Aave's price for 2032 according to our analysis should range between $112.36 to $168.54 and the average price of AAVE should be around $140.45.
Aave price prediction 2033: Aave's price for 2033 according to our analysis should range between $120.58 to $180.87 and the average price of AAVE should be around $150.73.
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FAQs about Aave
Aave’s current price is $96.64 and witnessed a -1.42% decrease in the past 24 hours. AAVE/BTC pair saw a -0.71% decrease in the past 24 hours
Investing in Aave, AAVE will purely depend on your personal risk appetite. As you can see over the past 24 hours Aave’s price has witnessed a -1.42% decrease and over the past 30 days Aave has increase by 15.28%. So it all depends on if this investment will hit your trading goals.
According to our latest Aave Price prediction for 2023, AAVE should vary between $137.85 and $91.90. Please keep in mind that the crypto market is very volatile and this Aave price prediction does not account for extreme wild swings in price.
As per the Aave price prediction 2023 model above, AAVE’s price for November 2023 should range between $91.90 to $137.85 with the average price for November being $114.87
According to the Aave Price Prediction model above, AAVE’s price in 2024 would be $79.82. This price would however would range from $95.79 and $63.86.
According to the Aave Price Prediction model above, AAVE’s price in 2025 would be $85.66. This price would however would range from $102.80 and $68.53.
According to the Aave Price Prediction model above, AAVE’s price in 2026 would be $91.93. This price would however would range from $110.32 and $73.55.
According to the Aave Price Prediction model above, AAVE’s price in 2027 would be $98.66. This price would however would range from $118.39 and $78.93.
According to the Aave Price Prediction model above, AAVE’s price in 2028 would be $105.88. This price would however would range from $127.06 and $84.71.
According to the Aave Price Prediction model above, AAVE’s price in 2029 would be $113.63. This price would however would range from $136.36 and $90.90.
According to the Aave Price Prediction model above, AAVE’s price in 2030 would be $121.95. This price would however would range from $146.34 and $97.56.
According to the Aave Price Prediction model above, AAVE’s price in 2031 would be $130.87. This price would however would range from $157.04 and $104.70.
According to the Aave Price Prediction model above, AAVE’s price in 2032 would be $140.45. This price would however would range from $168.54 and $112.36.
According to the Aave Price Prediction model above, AAVE’s price in 2033 would be $150.73. This price would however would range from $180.87 and $120.58.
The highest price for Aave was recorded in 18 May 2021 during which AAVE hit an All Time High of $661.69
The price of 1 Aave according to current market rate is $96.64