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This year has been a tough sail for Aave since May 2022, when the Terra/Luna implosion caused a cascade of bankruptcies, layoffs, and liquidations. Subsequently, the chain of unfortunate market and geopolitical events like the Russian invasion of Ukraine, U.S. inflation, and 3AC and Celsius insolvency, has also contributed to the downward pressure on the price of AAVE.
With the recent massive downfall of the crypto market caused by FTX contagion, is it possible for Aave to reclaim its all-time high in 2023? Continue with the article to learn about Aave price analysis and prediction by Coinpaper.
Read also: Aave freezes low-liquidity pools for 17 Ethereum-based tokens
What is Aave?
Aave is a leading DeFi lending protocol on Ethereum that allows lenders to earn interest on their crypto by depositing it into specially created liquidity pools where borrowers can access it after depositing some funds as a collateral. The protocol was originally known as ETHLend when it launched in November 2017, but later rebranded to Aave (which means “ghost” in Finnish) as it went beyond Ether lending. The protocol’s native token, AAVE, entitles holders to discounts on platform fees, plus gives them a say in Aave future development.
Aave (AAVE) price
Currently, Aave Price is USD. AAVE has a circulating supply of coins and a total supply of . If you are looking to buy or sell Aave, Coinbase is currently the most active exchange.
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Aave price prediction 2023
The current market sentiment is full of fear, uncertainty, and doubt (commonly known by the acronym FUD), as fears of FTX contagion mount. At the moment, it’s difficult to assess exactly how much damage has FTX collapse has done to the crypto industry, since some affected crypto companies may be already secretly insolvent due to highly leveraged positions, as we have seen in the aftermath of Terra's implosion.
According to our estimates, it will take months for the full scale of FTX bankruptcy to become clear, so the turning point for the crypto market won’t come before late Q1 to early Q2 2023, although for now, it seems that the industry has absorbed most of the damage.
Another market factor that should be taken into consideration is how successful will be the U.S. Federal Reserve’s efforts to curb inflation. For now, there is reason to believe that Fed is making some progress in its attempts to cool the overheating economy — on November 30, Federal Reserve Chair Jerome Powell announced it’s time to slow the pace of coming rate hikes, which immediately triggered a positive reaction from both crypto and equity markets.
Given the above information, one can easily guess that there will be a considerable divergence between bullish and bearish Aave 2023 price predictions due to multiple unknown factors. For this reason, we estimate that the bullish scenario will see Aave price at $84.35 to $98.12. On the flip side, a fading interest in the new meme coin may push the price of Aave to $43.14-$29.85 lows.
Aave price prediction 2024
In 2024, the global macroeconomic backdrop is likely to be more favorable to the crypto market, adding value to Aave (AAVE) and other cryptos. However, the possibility of black swan events similar to the collapse of FTX cannot be completely ignored.
Keeping this in mind, we foresee the price of Aave to climb as high as $121.81, with the more distant prospect of reaching $168.90 in 2024. The bearish scenario is likely to see Aave (AAVE) trading between $111.59 and $83.42 in 2024.
Aave price prediction 2025
Since it’s practically impossible to foresee what market factors will influence cryptocurrency prices in 2025, this part of our Aave (AAVE) price analysis and prediction is based on pure speculation and observation of Aave historical price movements.
Our Aave 2025 price forecast expects AAVE to rally towards $205.15 and reach $263.18 by the end of the year. The bearish scenario would see Aave at $173.67 to $145.72.
Aave (AAVE) price prediction 2026
Looking ahead four years, to 2026, Coinpaper's price prediction for Aave is neutral. In 2026, we expect Aave to reach at least $335.61 before climbing higher to $408.94. In case of a bearish scenario, Aave may fall to $287.30.
Is Aave (AAVE) a good investment?
Since AAVE token has a solid utility case as a native token of the leading lending platform, it can be a good addition to the altcoin allocation in your portfolio. Moreover, the token is designed to be deflationary, as a portion of AAVE is burned whenever the protocol gathers fees. However, bear in mind that investing in cryptocurrencies carries a high degree of risk, so make sure to do your own research before investing in any token.
Bottom line
Are you ready to invest in Aave? Very few if any analysts forecast its value going down to zero, although you can’t be sure these days, so make sure you always do your own research before making investment decisions. And keep in mind that cryptocurrency prices can be extremely volatile, so trading crypto always involves a high degree of risk.
You can buy AAVE from many crypto exchanges, including Coinbase
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
FAQs
Who created Aave?
Aave was founded by Stani Kulechov, a Finnish programmer and serial entrepreneur.
What was the all-time high for Aave (AAVE) ?
The all-time high price of Aave is $ on 2021-05-18
