AAVE/USD Technical Analysis
About AAVE (AAVE)
The open sourced Aave protocol is non-custodial and works with short-term flash loans that are compatible with a variety of other services. It allows users to borrow assets and earn interest on deposits. The AAVE coin is the proprietary governance token used on the Aave network.
This protocol network lets anyone deposit money to earn interest as well as borrow money through loans that offer both undercollateralized and overcollateralized options. AAVE is ranked #35 overall among cryptocurrencies, making it an oft-overlooked digital asset with a lot of potential. It is traded frequently with the US dollar (USD) and between other cryptocurrencies.
Aave is part of the Ethereum mainnet, which is where it launched from. The Aave coin is considered to be a decentralized finance coin, or DeFi. This means that no central banks are involved in determining the value or setting inflation for the currency. It is a digital only currency that is traded online and that can be stored in digital accounts guarded by password protection.
Ranked #35 out of thousands of cryptocurrencies, Aave has a market cap of $3.56 billion USD. Only 16,000,000 can exist in the marketplace at one time, of which 100% have already been produced. When the governance token AAVE launched, 23% of the coins were kept by the developers and founders of the Aave network and the rest were distributed to network users who held LEND tokens- the network’s previous currency.
Aave coins are backed by flash loans and interest earning, ensuring long-term support for the cryptocurrency. The currency is also helped by its predetermined rarity and made somewhat stable by the fact that no new AAVE can be mined.
Aave is not one of the fastest cryptocurrencies when it comes to processing time. 20 transactions can be processed over the course of five minutes. Its speed, however, is not considered one of the selling points for this digital asset. The decentralized and transparent lending network that the Aave coin stems form is what really makes it stand out. It was the first decentralized lending platform ever and has managed to exist as one of the top platforms of its kind since then, holding onto much of the market share in that niche.AAVE Price Prediction
AAVE Coin History
Aave Was known as ETHLend back in 2017 when it was simply a digital lending platform. After an ICO (Initial Coin Offering), the company raised $16.2 million and switched over to Aave tokens. All LEND tokens from the previous platform were able to be traded in for the new AAVE tokens at a rate of 1:100.
Aave became a parent company and hub for Aave Lending, ETHLend, Aave gaming, and more. The platform started to change from a decentralized P2P and became a pool based platform where lenders make cryptocurrency deposits and enter into a pool contract. This allows pooled funds to be lent by depositing collateral. The instant loans, then, have characteristics determined by how the pool is doing. This grew out of the founders’ desire to allow for more complicated financial transactions than simply trading between addresses.
AAVE Becomes More Useful
In an attempt to expand to a wider market and make their token more useful, AAVE developers made substantial changes to the Aave Protocol so that users could borrow assets and incur interest on their deposits. This significantly increased the liquidity of AAVE and set it up for a massive period of growth.
The 150x Spike
In November of 2020, analysts noticed a 150x increase in the AAVE rate. This occurred over a period of about four months, making it one of the best performing cryptocurrencies in that period. This significantly boosted the profile for the cryptocurrency, and it has managed to stay high since then due to significant lending activity.
AAVE Price Factors
Aave Is not considered as volatile as some of the higher-ranking cryptocurrencies. That's partly due to its usefulness on the Aave lending platform and it's limited worldwide supply. However, there are still some price factors that need to be taken into consideration by anyone who would like to invest in this cryptocurrency.
There are only a limited number of Aave coins that can be produced, all of which have already been created- a total of 166 million. This limits the availability of the coin and helps control the AAVE price.
The Aave rate is certainly affected by changes in the global economy. It can also be seriously affected by changes in any of the major economies for countries where it is traded, including the United States, the UK, and China.
We have seen the AAVE price act bearish when covid lockdown protocols were put in place and the economy was severely stifled. We've also seen the AAVE rate improve as stimulus checks were sent out to businesses and citizens and as economies reopened when the covid pandemic started to ease.
Some countries have completely outlawed cryptocurrency trading, making it impossible to buy or sell Aave there. Other countries are mulling over legislation related to cryptocurrency or have some legal restrictions already in place. You can watch the Aave chart closely to see how new legislation affects the price, and you can be certain that any major legal restrictions on cryptocurrency trading will hurt the Aave rate.
Major cryptocurrency exchanges throughout the world allow the buying and selling of Aave. They permit users to store their Aave coins to be stored securely on their site and traded between other currencies. In some cases, the currency exchanges allow for Aave to be cashed out in a local fiat currency.
Because Aave is not backed by a central bank, it is subject to extremely volatile action. This is why it is so important that anyone interested in investing in this cryptocurrency make use of expert analysis and trading tools like those found on FX Leaders. Using the Aave chart and other analytical tools, potential investors can ensure that they are making smart moves and minimizing their risk of losing their Investments. They can get the help they need to determine when to act bearish or bullish on digital assets like Aave.
In order to trade Aave with success, you will need to have a firm grasp of the cryptocurrency market and the factors that affect value. You also need to watch for upcoming economic changes and changes to the Aave platform that can determine the value moving forward.
Since AAVE is so volatile, it's important that you watch the market closely for an opportunity to make a purchase, to cash out, or trade it for different cryptocurrency that may be performing better.
AAVE/USD - FAQs
Aave is the digital coin used on the open sourced Aave network. The network is primarily designed as a platform for earning interest on fiscal deposits and taking out loans. Aave is the #35 ranked cryptocurrency with a market size of over $12 billion.
Aave can be traded on a number of cryptocurrency exchanges, including Coinbase, Kraken, Gemini, and more. These exchanges allow for digital storage and trading between different cryptocurrencies as well as fiat currency, in some cases.
Aave coins can be stored in a digital wallet on most trading platforms. Many of the cryptocurrency exchanges that allow for the buying and selling of Aave also offer an option to securely store the digital asset in a password-protected account. You may also be able to take the account and save it to a flash drive for physical storage. This will not protect the value of the coins and the Aave price from changing based on market activity.
Aave can be used to purchase other cryptocurrencies, such as Bitcoin, Litecoin, Dogecoin and more. Aave coins can also be used on the Aave network to take out loans and to earn interest. On some digital trading platforms, the Aave can be cashed out for fiat currency, like US dollars. Many betting and gambling websites online allow for purchases to be made through the Ethereum network, which can include coins like Aave that are a part of that network.
Aave can be bought freely from most countries in the world. There are a few countries that specifically prohibit the buying and selling of any cryptocurrency, including Aave. The following countries have all outlawed cryptocurrency transactions: Vietnam, Bolivia, Algeria, Nepal, Morocco, and Pakistan. In the future, this list could change.
There are no UK regulations pertaining to Aave or any other cryptocurrency at this time except for regulations related to money laundering. New legislation could be enacted that changes this status, however.
There are always risks associated with trading cryptocurrency, as the Aave price can fluctuate wildly. This is considered a volatile form of currency, meaning it is not uncommon for people to lose or gain large amounts of money in a short period of time when trading cryptocurrencies. This is why an Aave chart and other analytical tools are very important for interested investors.