Aave Price Prediction for 2021 and Future Predictions | FXleadersFX Leaders

AAVE (AAVE) Price Prediction for 2021: Can Aave Claim All-Time Highs Soon?

Last updated on Wed, October 20, 2021 by
Arslan Butt • 5 min read
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MARKETS TREND

AAVE – Forecast Summary

AAVE Forecast: H1 2021
Price: $550- $600
Price drivers: War on Cryptocurrencies, Technicals, Market Sentiment
AAVE Forecast: 1 Year
Price: $700 -$750
Price drivers: Increased Adoption and Utility, Cryptocurrency Market Evolving, Technicals
AAVE Forecast: 3 Years
Price: $1,500 -$2,500
Price drivers: Price drivers: New Developments from AAVE, Crypto Market Sentiment

 

 

Current AAVE/USD Price: $

Aave is an Ethereum-based money market that allows users to borrow and lend a wide variety of digital assets, from stablecoins to altcoins. The Aave protocol is governed by AAVE holders. Aave, which means “ghost” in Finnish, was initially known as ETHLend when it launched in November 2017, but the rebranding to Aave happened in September 2018. AAVE provides holders with discounted fees on the platform. Moreover, AAVE also serves as a governance token, which gives owners a say in the future development of the protocol.

AAVE Coin seems to have resumed the bullish trend that started early this year after the crypto crash, so AAVE has performed better than most of the market. Most of the top 100 cryptocurrencies were still fighting to achieve their big figure of February 2020, when AAVE hit its all-time high of $498 in February, which was broken in May, when AAVE reached $707. However, its growth could be attributed to the fact that the coin is running on the Ethereum network. That may be the reason behind Aave’s sudden growth until mid-May, as the current market cap transaction has an average valuation of almost $3.5 million. The current Aave price is around $410, with a 24-hour trading volume of $653,828,345. The current Aave ranking is #26, with a live market cap of USD 3,951,460,762. It has a circulating supply of 12,794,278 Aave coins and a maximum supply of 16,000,000 Aave coins. Aave coin is trying to decide at the moment as most cryptocurrencies, but it still seems better supported than most and ready to resume the bullish trend. 

As we earlier mentioned, Aave is a decentralized finance protocol that enables users to lend and borrow various digital assets, from stablecoins to altcoins. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as security to take out a flash loan using this liquidity. Aave introduced additional features, such as instant loans and other forms of issuing debt and credit that take advantage of the unique design properties of blockchains.

Who Are the Founders of Aave?  

Aave is a for-profit company established in 2017 by Stani Kulechov. It is based in Switzerland. Stani Kulechov was trained in law in Helsinki and started Aave while he was studying. The firm, originally named ETHLend, raised $16.2 million in an initial coin offering (ICO) in 2017, during which time it sold 1 billion units of its AAVE cryptocurrency – originally named LEND. 

What Makes Aave Unique?  

Aave has many unique points as compared to other cryptocurrencies. During the DeFi craze in the summer of 2020, it was seen as one of the biggest projects in terms of the total value of crypto locked in its protocol. It allows people to borrow and lend in nearly 20 cryptocurrencies, meaning that users have a wide amount of choice. One of Aave’s flagship products is “flash loans,” which it touts as the first uncollateralized loan option in the DeFi space.  Another unique point is how those who borrow through Aave can alternate between fixed and variable interest rates. While fixed rates can give some certainty about costs during times of volatility in the crypto markets, variable rates can be helpful if the borrower thinks that prices will fall short.

Recent Changes in the AAVE Price

PeriodChange ($)Change %
1 Month+58+23.4%
3 Months-161-35.9%
6 Months-20+4.7%
1 Year+377+871%
Since 2018 +389+1820%

 

AAVE Live Chart

AAVE/USD

AAVE Price Prediction for the Next 5 Years

We will represent the comprehensive AAVE price prediction and forecast that provide a better insight into the current AAVE market situation, AAVE market capitalization, and future expectations concerning the price action. It will help to understand what’s going on in the crypto market right now.

Aave is a decentralized finance protocol that allows people to lend and borrow crypto, which Stani Kulechov founded in 2017.The current Aave price is $322.05, with a 24-hour trading volume of $373,828,345. Aave has dropped 2.15% in the past 24 hours. The current Aave ranking is #28, with a live market cap of USD 4,120,460,762. It has a circulating supply of 12,794,278 AAVE coins and a maximum supply of 16,000,000 AAVE coins.

We believe that Aave is the best investment opportunity for the long term. As per our forecast, the price of AAVE will be about $1327.240 per coin at the end of December 2021. In 2022, the price is forecast to rise further to $2371.730 (+250 percent). In 2023, the price is projected to be $3410.670(+560 percent) and $4448.460 (+880 percent).

Our platform thinks that the Aave coins are a profitable investment. The AAVE price can increase according to the predicted data by them. As per our rough estimate, AAVE is likely to be worth $1,347.37 in 2025. December 2021 is likely to end with a price of $627.17 after next year with a price of $756.3; in 2023, the price will be $908.12.

Technical Analysis – AAVE/USD

Cryptocurrencies gave back large parts of their value, with AAVE/USD taking one of the biggest hits during the cash, losing nearly $500 or 3/4ths of the value. Although, it still seems better supported than most other cryptos right now, after the bounce above the 20 SMA (gray) on the monthly chart below. Aave more than doubled in price after the bounce in July, reaching a high of $448 and slashing losses in half, but the climb has stopped for now. Although, the bias still remains bullish for this pair, since the larger trend is still up, making higher lows after the pullback.

AAVE/USD Reversing above the 20 monthly SMA

On the weekly chart below, the 20 SMA (gray) was providing support in April/May when cryptocurrencies were still climbing higher, but it got broken towards the end of May and it seems like this moving average has turned into resistance now. The 20 SMA turned into resistance immediately after the price fell below it, while it rejected AAVE/USD this week again, with the price pulling back down after the bullish price action of the last several weeks. The ascending trendline has been broken, so the 20 SMA remains the ultimate test on the weekly chart. If buyers manage to push above this moving average on the weekly chart, then the bullish trend will be back on, until then, the uncertainty will continue, as the price bounces between the 50 SMA (yellow) and the 20 SMA.

AAVE/USD finding resistance at the 20 weekly SMA now

On the daily chart, smaller moving averages were providing support when the trend was bullish, then the larger MAs came into play as the trend slowed and eventually reversed. The 200 SMA (purple) provided support for about a month on several occasions before it was broken. It turned into resistance after that, reversing the price down in July, but has now been broken to the upside and it has resumed the ob of providing support. So, overall this pair looks bullish and we are thinking about buying Aave long term.

 

 

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.