2021 has been the game-changer for the entire crypto space, especially for DeFi tokens. Because the mega alt season commenced with a massive upsurge in DeFi protocols. Interestingly, AAVE has been one of the top gainers with incredible growth.
AAVE price has shown tremendous performance since launch. However, as the crypto fraternity is on the horizon of the mega new year, the DeFi protocol is likely to replicate a similar rally in 2022.
Do you ever wish to be a part of this rally? Then, you are at the perfect spot, this article will thoroughly guide you on this open-source, non-custodial lending protocol. In addition, you can read detailed AAVE price predictions for 2022 and for the long term.
|Circulating Supply.||13,451,851.72 AAVE|
|All-time high.||$666.86 on May 5th, 2021.|
|All-time low.||$27 on November 11th, 2020.|
What Is AAVE?
AAVE is an open-source decentralized and non-custodial liquidity token that thrives to facilitate users to lend and borrow cryptocurrencies. Lenders can earn a substantial interest in depositing assets into specifically established liquidity pools. However, Borrowers can subsequently avail crypto as collateral to acquire a flash loan through this liquidity.
The AAVE protocol is open-source enables to interact with a user interface client, or establishes communication with the smart contracts on the Ethereum blockchain. However, the interaction cost relies on the transaction’s intricacy and network status. Another fascinating feature of the platform is Flash loans that allow traders to buy any convenient amount of assets without putting up any collateral.
The AAVE platform has its own native governance token AAVE. The token could be utilized to vote and determine the product of Aave Improvement Proposals(AIPs) and further upgrades. In addition, AAVE could be staked to earn rewards and fees from the protocol. It can be staked within the protocol Safety Module to facilitate security or insurance to the lenders.
AAVE was previously known as ETHLend and launched in November 2017 by Stani Kulechov. However, the rebranding of the platform was done a year later in September 2018. DeFi was not so popular at the time of AAVE’s launch. Realizing the scarcity of lending platforms on ETH blockchain, the founder came up with this project.
The founder of the platform has accumulated a vast knowledge of programming when he was young. He was an early entrant to the blockchain space. In order to make capable of AAVE to enable a broad range of services, he rebranded ETHLend to AAVE. The central goal of the platform is to target the audience who are already occupied in the cryptocurrency space.
Furthermore, the Initial Coin Offering (ICO) was completed in November 2017 where it has managed to raise $16.2 million in funds. Whilst in September 2018, the platform was rebranded from ETHLend to AAVE. The mainnet launch was completed in January 2020.
- The AAVE project has been deployed on Avalanche blockchain. The traders with assets on Ethereum can now bridge through Avalanche to deposit on the AAVE chain.
- Balancer lab launched boosted pools to encourage LP yields and increased gains from money markets. Further, enabling cost-effective wrapping/unwrapping of protocols during a swap.
AAVE Price Prediction 2022:
As Defi tokens are charting green by the year’s end, there has been an expectation of mega DeFi season to kickstart the year. If bulls continue the year-end rally in early 2022, AAVE price is anticipated to clear all the above resistances. It would move slowly generating consequent lower highs and would hit $400 by Q1 of 2022.
The asset would remain choppy for the next two months of the quarter. As a whole on an extreme bullish case, AAVE price would hit a maximum of $500. If protocol falls into a trap of bears in mid-way then it would end up trading around $320.
The second half of the year would remain challenging for the asset where cash may start flowing out of DeFi to other sections. It may experience high volatility throughout the year. Potential high if it undergoes any supercycle in the second half would be $575. The average and minimum possibilities are $421.452 and $320.45.
AAVE Coin Prediction For The Next Five Years:
As the crypto industry continues to evolve in the future, it may experience growth in the adoption curve and face regulatory restrictions at the same time. However, if it manages to resist the challenges and continues to rise, then AAVE’s price would hit a maximum of $952.45 by the end of the next five years. With average buy and sell pressures the asset would end up trading at $789.56. However, the asset would plummet to a bottom of $526 if bears predominate the space.
AAVE Market Prediction:
According to the wallet investor, they believe the AAVE price might rule the Metaspace and may easily hit a maximum of $304.90. The minimum price is $0.00001 and the average price would be $133.913 by the end of 2022. They anticipate that the price may hit the milestone of $9.73, the average AAVE price is expected to smash $3.241. Also, on a bearish note, the token would plummet to $6.482.
Gov. capital has revised their prediction for the AAVE price, they expect tokens to hit a maximum of $1429.88. On the contrary, they believe, trend reversals in the market would plummet the price to $1056.86. And with average buy and sell pressures it would end up trading at $1243.37. The website has also made a whopping prediction in the long term, they expect the price to surge to a maximum of $7015.14. The average and minimum probabilities is being $6100.125 and $5185.106 respectively by the end of 2025.
Digitalcoinprice revised its price prediction on AAVE. According to them the price will reach $437.37 by 2022 and rally further to cross $602.57 by the end of 2024. By the end of 2025, the price may hit $551.49.
Our AAVE Price Prediction:
The AAVE seems to be unstoppable with a series of events lined up for launch. This DeFi based platform is the best-suited investment in the current uncertain market scenario.
According to Coinpedia’s formulated AAVE price prediction, if the network launched upgrades such as Liquidity mining and staking and game maker launch, the price may easily surpass the $450 mark in the next year.
If the network fails to execute its plan, then the price can flip into a bearish trap and dip to $286.56.
As a long-term prediction, in the future, the network may plan for its expansion across various countries, where it may face regulatory issues, and uncertain market crashes and speculations regarding the coin’s pump to dump, the AAVE price may trade at an average price of $750 by 2022.
|Year.||Potential High.||Potential Low.|
Historic Market Sentiments:
Though Initial Coin Offering (ICO) was done in November 2017, the protocol went to live on mainnet in January 2020. Interestingly, starting from the initial days, AAVE price has thrived to exhibit a sort of volatility. However, with certain fluctuations, the asset plummeted to bottom support from $42 to $28 by the year’s end.
The AAVE price has kickstarted with a massive rally by early January. The protocol has managed to experience a prolonged bull cycle for over five months. In the first two months, the asset has undergone two supercycles where it surged by over 500%. However, until April the asset traversed within a narrow range-bound scale between $300 to $500. After clinching an ATH of $666.86 on 5th May, the asset woefully fell into prey for a Chinese financial crisis.
With continued bearish dominance the AAVE price tumbled to the bottom support of $180.86 by late June. The second bull session of the asset was triggered in July, with consecutive supercycles the asset had managed to hit an upper resistance of $415 in August.
Further, a complete crypto restriction by the Chinese government in September triggered a lengthy bearish cycle. The asset almost fell by 50% from $325 to below $175 by mid-December. The second half of the month is turning out to be positive where the asset is back on track reclaiming price above $285 levels.
AAVE’s price would hit a maximum of $500 by the end of 2022.
AAVE would be worth more than $900 by the end of 2025.
Based on the data, it can be predicted that it is Profitable to invest in AAVE for the long term.
AAVE is available to trade on major crypto exchanges like Binance, Huobi Global, FTX, KuCoin, etc.
If the current bullish trend continues and if the network executes updates and partnerships as per the plan, AAVE is expected to hit $1000 by the year-end.