AAVE Price Prediction 2023, 2025, 2030, and 2040: Will Aave reach $1000?

AAVE Price Prediction 2023, 2025, 2030, and 2040: Will Aave reach $1000?

AAVE Price Prediction 2023 is $130

Read on for other Predictions


Latest AAVE Price

AAVE Price Performance in the Last 12 Months

  • Last 1 Month: -8.3%
  • Last 6 Months: -24.7%
  • Last 1 Year: -73.5%

Performance vs Key Benchmarks (Last 3 Months)

  • vs MakerDao (Better)
  • vs Lido (Worse)
  • Vs Curve (Better)

Is Aave a Good Investment?

Before we predict if Aave Tokens are good Investments, let us understand the Aave Protocol better. Aave tokens are used on the Aave protocol

Aave (AAVE) is a decentralized lending protocol allowing users to earn interest on cryptocurrency deposits or borrow against those deposits. Like many other secured lending products, Aave does not rely on credit checks or any other information like income or other borrowings. Instead, borrowers have to place collateral to be able to borrow from the pool. A traditional finance example would be to borrow against a fully paid home to raise money for a new business. One can always borrow at a value much lower than the value of the Collateral to manage risk. In case the value of the collateral falls below a threshold value (closed to the borrowed value), the position is liquidate. Similar to traditional borrowing, there is a fixed or variable borrowing rate. An algorithm manages the risk of the pool by adjusting interest rates depending on crypto price movements which is inevitable for any cryptocurrency.

AAVE is powered by the Ethereum (ETH) blockchain and uses smart contracts to facilitate lending and borrowing. Aave began as a P2P (peer-to-peer) lending model under the brand name of ETHLend before evolving into a more ‘traditional’ pool-based system, somewhat fashioned like traditional lending companies.

How is this superior to traditional secured borrowing?

There are no fixed tenures or repayment schedules. Ease of borrowing is significantly higher. Like every other protocol investors can also stake on the Aave platform to earn returns on their investments.

Some Facts about Aave the Token

AAVE is the ERC-20 token of the Aave Defi Protocol. AAVE issues two types of tokens, one being the Aave token which is a native token, and the other one being the aTokens which is issued to the lenders. The lenders can deposit these aTokens and collect interest for their deposit. Here are some of the uses of Aave:

  • AAVE token can be used for staking on the Aave Defi Protocol. It can be used for providing security to the users who deposit their cryptocurrencies on the Aave Defi Protocol.
  • The AAVE digital currency offers holders a few benefits. For example, AAVE borrowers don’t get charged an expense in the event that they take out loans designated in the token. Likewise, borrowers who use AAVE as insurance get a discount on charges.
  • AAVE token is also used to reward the users who have their cryptocurrencies locked in the protocol.
  • AAVE token also helps the users pay fewer fees on the Aave Defi Protocol which means if a borrower uses AAVE as collateral for their loans, will pay fewer amounts as a fee than the ones who lock other cryptocurrencies into the platform.
  • AAVE can also be used as a Governance token for the DAO which means the holders of AAVE can participate in the voting on the Aave Defi Protocol.

The Total Value Locked (TVL) on Aave is $3.78 Billion. This has fallen from a peak of $18 B in October 2021. However, the TVL has stabilized over the last couple of weeks.

While the Aave the protocol appears to be a good use case, it is is unclear if there is a clear value added purpose of for Aave the token. No doubt that there are some benefits for users owning them, but most of the benefits are accruing in the form of discounts and rewards which essentially get deducted from the margins accrued by the protocol. This also explains why Aave has lost significant value over the last 12 months. However, given the default value provided by the protocol, the fall in price of the Aave Token has been much lesser than other Alt Coins.

Purely, in terms of value to add to users, the Aave Token does not appear to be a good case for Investment. It may still sustain and grow on account of the protocol itself and increased liquidity in the financial markets but there could be better investment options.

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Will Aave reach $1000?

It would take Aave 25 years to reach $1000 if it were to grow at a rate of 25% per annum. However, this is not assured. There are numerous elements of the DeFi framework that needs to be resolved and hence the heavy dependence on excess market liquidity.

AAVE Price Prediction 2023, 2025, 2030, and 2040 (Aggregated)

Despite the recent crypto crash, Aave has continued to grow in popularity due to its ability to offer high-interest rates with a strong focus on security. With its innovative approach to lending, Aave (AAVE) is quickly becoming the go-to platform for those looking to maximize their returns. Here is the future price prediction for AAVE:

AAVE Price Prediction 2023 is $130

AAVE Price Prediction 2025 is $228

AAVE Price Prediction 2030 is $1038

AAVE Price Prediction 2040

The AAVE Price Prediction 2040 is $3889 provided AAVE gains 20% annually from now.

AAVE Price Prediction Today (Short Term)

Overall OutlookPartially Positive
1. Market's WisdomNeutral
1a. Market DataPartially Negative
1b. Technical RecommendationBuy
2. Crowd's WisdomPartially Positive
2a. Social Media BuzzHigher
2b. Social Media SentimentNeutral

Competitor Analysis: Aave vs Compound Finance

Compound Finance is the Defi lending protocol allowing its users to earn interest in their digital assets by depositing these to various pools by Compound Finance. Thus, it is one of the notable competitors of Aave protocol and hence, let us have a brief comparison between the both:

 AAVECOMP
Major audienceAave platform is majority used by people interested in earning interest by depositing their assets.Compound Finance is primarily used by developers looking for an autonomous interest rate protocol.
Supported platformsSaaSSaaS
CategoriesAMM, Crypto lending, Crypto staking, Dapps, DEX, Defi projects and yield farming.Crypto lending, Dapps, defi projects and yield farming.
Performance in the last month+1.59x+1.6x
Performance in the last three months+1.05x+1.05x

As we can see that Aave and Compound finance performed nearly similarly in the past three months, thus, Aave failed to outperform Compound Finance in the given period.

Is Aave Worth Investing In?

Aave is a decentralized finance protocol that helps users to borrow and lend cryptocurrencies. Thus, it allows lenders to earn interest on their deposited cryptos and the borrowers can use their cryptocurrencies as collateral.

Following are the summed-up primary use cases of the AAVE token:

  • Can be used for staking on the platform.  
  • Can be used for paying fees on Aave protocol.
  • Token holders can also participate in the governance of the platform.
  • Token holders get additional benefits including discounts on the platform.

Thus, Aave cryptocurrency is useful and has real-life utility.

However, the market for such Defi protocols is already very clustered i.e., there are plenty of other similar protocols that allow the users to lend and borrow crypto assets and in turn allow them to earn interest through liquidity pools, such as Compound Finance, MakerDAO etc.

But, the unique selling point of Aave is that it provides a vast range of cryptocurrencies (around 20) to choose from when compared to other platforms. Moreover, the borrowers at Aave are allowed to alternate between fixed and variable interest rates, where fixed interest rates provide them with certainty about the costs even in the volatile4 crypto market.

Moreover, AAVE is more than 7.18 times down from its all-time high value, making it a good crypto to invest in.

How to Buy AAVE Tokens?

Like other cryptocurrencies, the process of buying AAVE is similar. Here are the steps to buy AAVE tokens:

The 1st step is to find the right crypto exchange that is offering up AAVE for trading. There are different options for crypto exchanges so you need to compare the features and prices to make the best decision.

The 2nd step is to create an account in that particular exchange. In order to do that you need to verify your identity.

After the verification is complete, the 3rd step is to fund the wallet. After this, you will be able to buy AAVE easily.

Where To Buy Aave?

Aave is currently available for trade on Binance, BTCEX, BingX, MEXC, and XT.COM.

AAVE Price Prediction

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.

Subhash

Subhash

Subhash, Founder of Crowdwisdom360 is an MBA and a Trained Financial Advisor with an extensive background in Forecasting in Financial Services and Politics. He has appeared many times on National TV and has written for a variety of magazines on Wealth Management and Election Strategy.

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