In this guide, we will express our and the market’s views on the future of Aave as we discuss AAVE price forecasts for 2023 and beyond.
Keep in mind that you should take this and any other forecast with a grain of salt as predicting anything is a thankless task, let alone predicting the future of a new highly volatile financial asset like Aave.
Now, let’s get into it.
Before we delve into Iota’s price prediction and answer questions about whether Aave is a good investment or not, why Aave will succeed or fail, or why Aave’s price will rise or fall, let’s quickly take a look at what Aave is and its history to date.
What is Aave
Aave started as ETHLend in 2017 after raising $16.2 million in an initial coin offering (ICO) to create a decentralized peer-to-peer lending platform. Subsequently, they changed their name to Aave when they switched to a liquidity pool model. Aave launched the Aave protocol in 2020, an open-source, noncustodial liquidity protocol where users can earn interest on deposits and borrow assets.
Aave is a decentralized money market protocol where users can lend and borrow cryptocurrency on 20 different assets as collateral.
Aave currently offers loans and loans for 22 different ERC-20 tokens including USDT, USDC, ETH and LINK.
Lenders can deposit any of these ERC-20 tokens into Aave and earn interest on those funds. The interest lenders earn comes from the interest paid by borrowers who are borrowing that ERC-20 token.
The protocol has a native Aave token, which is also a governance token that allows the community to decide the direction of the protocol collectively.
Lenders can earn interest by providing liquidity to the market, while borrowers can borrow by collateralizing their cryptoassets to borrow from liquidity pools.
AAVE Price Forecast
The entire cryptocurrency world is on the verge of complete collapse. Bitcoin fell 75% from its all-time high amid broader market declines caused by furious inflation and the US Fed’s rate hikes.
When you add the most recent collapses of huge industry players (FTX, Celsius, Moon etc.) into the equation, the horizon is murky and there will be more blood on the streets of the crypto city.
Investors are selling risky assets and moving to more stable markets. Crypto is still perceived as a very risky game and therefore sell off.
Our algo still sees some green in 2023, especially in the second half of the year. This is reflected in our forecast for 2023.
Right now, Bitcoin needs to find a bottom before we can move in the opposite direction and reverse the trend.
Once Bitcoin settles into the new price range, altcoins will start doing the same – we’ve seen this scenario dozens of times in distant and more recent history.
Our price forecasting model is bearish for the next 90 days with a hint of a bull market straddling quarters from Q1 to Q2. We expect whales and other larger players in the market to finish filling their bags around that time, which will cause a typical and sudden crypto spike.
The fundamentals we evaluate are teams, tokenomics, use case, community, marketing efforts, liquidity and availability of exchange, hype and speculative potential, and some other proprietary factors developed in our crypto lab.
Aave Price Prediction 2023
High inflation and the extremely dangerous macroeconomic situation have been heavily reflected in the price of Bitcoin in 2022. When we take the internal crypto issues with big players like FTX, Celsius, Voyager, Luna going down, 2023 doesn’t look too good for bulls. We’ll likely see a lot of boring sideways price action with a tendency to slide down with each minor market tremor.
AAVE Price Prediction 2025
Our forecast model sees AAVE reaching $107.54 in 2025.
How much will AAVE be worth in 5 years?
The price of AAVE in 5 years could be around $ 96.69
Aave Price Forecast 2030 – 2040
How much will Aave be worth in 2030?
Our forecast model sees Aave reaching $268.86 in 2030.
How much will Aave be worth in 2040?
Our forecast model sees Aave reaching $537.72 in 2040.
Will Aave replace/surpass/surpass Bitcoin?
No, Aave will not replace or exceed BTC.
Can Aave reach $1000?
Yes, Aave could reach $1000 by the end of 2025.
Is it worth buying Aave?
We are supporters of moderately risky investments: invest most of your cryptocurrency portfolio in BTC (50%); 35% in a basket of large-cap coins and the rest in small projects with huge increases. So, in this context, it is worth buying Aave.
Is Aave a good investment?
Aave is, just like all other cryptocurrencies, a risky investment. It is more likely to go up than down because of the good use case, well-designed tokenomics, active community, and a strong team behind it.
How much will Aave be worth?
For the short-term future, it could reach $31.93. In the long term (8-10 years), it could jump to $268.86 or even higher.
Why will Aave succeed and go up in price?
Aave has a good use case, well-designed tokenomics, active community and a solid team behind it. All of these are a prerequisite for success and that’s why our forecasting model sees Aave rise to $268.86 in 2030.
Why will Aave go bankrupt and go down in price?
Cryptographic projects fail for various reasons. Some of the most common are: the team goes rogue and abandons the project, regulators declare it illegal and press exchanges to delist it, lack of media attention, more successful competitors, lack of a well-designed marketing strategy, loss of community support, potential vulnerability in the protocol, failure to achieve the minimum development activity foreseen on the protocol, inability to attract new developers to build on their platform.
How high will Aave go?
Our prediction model sees the price of Aave explode and reach $537.72 in the distant future.
What is the short-term forecast for Aave?
Aave will reach $31.93 over the next 90 days, which is a 42.4% change from the current price which hovers around $55.44.
Can Aave make you a millionaire?
Yes, if you buy a large enough sum. Don’t expect to invest $100 and become an Aave millionaire. But 100x price explosions are a common sight in crypto, so a $10k investment in Aave could make you a millionaire.
Aave Price Prediction Today – What Will Aave’s Price Be Tomorrow?
Aave will hover around $55.66 tomorrow.
Many investors (traditional and crypto) will tell you that fundamentals are extremely important and should carry the most weight when evaluating a project. We agree with this statement, to some extent.
Crypto is specific in the sense that fundamentals are hard to rely on. How come?
Well, most crypto investors aren’t technologically refined to figure out if it’s even feasible to do what the project claims to do. This leads to exaggerated and unfounded roadmaps by many crypto project teams. These roadmaps look great, and people flock to invest in the project even though, with a little technical or economic knowledge, they would have seen how ridiculous some of those ideas are.
For this reason, it is always good to check the feasibility of the use case by consulting someone more technically astute.
For example, many of these projects noticed the problem of the speed of transactions with Bitcoin, so they went all-in with the speed of their blockchains. But that speed had the cost of decentralization. Essentially, they claimed to have solved a blockchain trilemma, which has been bothering genes for centuries. But twenty appointments solved it in a week or so.
One of the best use cases among altcoins!
Aave was a forerunner in the sphere of DeFi lending, a platform launched in 2017 as ETHLend. Since then, Aave has seen tremendous growth in both user and volume. The sleek rebrand offered a much cleaner user experience along with a suite of new features, such as flash loans. Aave moved from the P2P lending model to a pool-based model. By developing a set of algorithms to determine the interest rate to be paid in pools for savers or liquidity providers (LPs) and the ratio of collateral or loan-to-value ratio (LTV) required for each asset, the system works without a third party broker. Anyone can participate and there are no KYC checks.
Evaluating the team behind the project is another point that needs to be addressed. Most of the time, these people will be the sole source of their claims (and modified LinkedIn profiles). So while this is an important criterion, keep in mind that a cunning team of marketers can fake legitimacy.
A huge RED FLAG on a team is tweeting, publishing, blogging about the price of their token. No legitimate team does this because they have smarter things to do, like working on their multimillion-dollar project. Only money hoarders run their official social media and blogs like the most blatant manipulators in the market (example: Justin Sun) to drive up the price before downloading their mountains of coins that they created out of thin air and assigned to themselves.
Such teams usually pay low-level crypto media publications to publish “unbiased” articles and reviews of their projects in an attempt to create the illusion of a widely respected and attractive project.
Community – pay special attention to this. The size of the community is not relevant as it can be easily spoofed (just check Fiverr or Upwork to see how easy it is to buy 100k of Twitter followers or subreddit subscribers).
What’s most important is the content that community members post: does it sound real? Is it just price-centered? It allowed to exercise some critical thinking or the only posts allowed are hucksters and cult idolatry of the team (most often the team leader gets a rockstar status among embarrassed investors).
Is it worth investing in Aave – community assessment
Moderately active subreddit with almost 7k subscribers and a rather active Telegram group. It seems to be genuine and authentic, no bots, no low quality posts about moons and price action.
Exchanges and wallet support
Another good indicator of how serious the project taken by other crypto agents is. Some smaller, marginal exchanges and wallets may be paid for listings, but larger platforms like Kraken, Binance, or Coinbase lend legitimacy to a project that’s listed there. So, this is a great starting point if the project is really worth something among its peers.
Why will Aave succeed?
Excellent support among popular exchanges (Binance, Coinbase Pro, Kraken, Kucoin etc) and wallets (Atomic Wallet, Trust Wallet, Watch etc.).
Sometimes the project makes sense and everything seems right except the role of the token. It is simply superfluous and forced in the photo (so the team can take the money and get rich). Aside from the logic behind the token, you should pay attention to its current and overall supply. In addition, inflation and the rate of production of new coins are extremely important. The distribution between the team, early investors and regular users is also of immense consequence. Check out Ripple and XRP to see how difficult it is to have organic price growth when there is a large number of people downloading millions of new tokens (unlocked) to the market every week.
It is important that tokens are woven into the project with smart incentives in mind. These are incentives in the world of cryptocurrencies: why should the buyer keep some coins, what is in it for him? Different projects use different methods to entice people to buy and hold their coin.
Is AAVE a good investment?
AAVE is positioned as a utility token with both economic and governance rights, which is quite close to the traditional stock stock, except for the main difference that it serves a decentralized protocol. AAVE is the governance token of the AAVE protocol, which allows you to propose and vote on changes to the protocol, such as adding new coins to use as collateral.
In addition to this, it is used as an insurance token to avoid liquidity shortages. To expose your AAVE to that risk, you get a wagering reward.
You can use it to deposit stablecoins for a secure APY or you can deposit coins like ETH or wBTC and use them as collateral and loan stablecoins to invest further and hope the price goes up and you can refinance your loans with appreciable assets.
The token itself plays a huge role in the ecosystem and game theory around it, and its accumulation of value through utility is solid.
Trading volume is another excellent barometer of asset quality. This can also be faked by automated trading and wash on small trades, but just filter them out and see if there is actual liquidity on the larger platforms.
Aave future – trading volume
Excellent and constant trading volume over the last 3 months with occasional peaks and dips. It moves in the range between $500 million and $2 billion per day, which is great liquidity for an ERC-20 token. The 24-hour trading volume did not fall below $500 million in all of 2021.
Now, we’re talking about the really impactful market forces.
power of social media, especially Twitter, Discord, and Telegram groups, and to a lesser extent, subreddits and Facebook groups, often outweighs the fundamentals of a crypto project. As a result, we see trashy and half-dead zombie projects like Dogecoin, Electroneum, Verge, Tron (not dead but everything is fake around it, from the number of users and dapps to the unoriginal and uninspiring and incompetent leadership) and similar shitcoins rise in the market capitalization charts, sometimes even entering the top 10.
The speculative wave can lift you up in the skies but can, more often, destroy your wallet in a big zilch.
Some people are good at swimming with these sharks (Twitter characters hidden behind some limping nicknames like Crypto [INSERT ANIMAL) or Crypto [INSERT VERB]) who coordinate their pumps and shilling and price dumps. However, ordinary cryptocurrency buyers lack the time or skill to keep up with them and are used as plankton, food for larger sea creatures to feast on.
However, social media can be a place where you come across some good advice about hidden gems. When you read something that piques your interest, don’t get too excited and invest right away. Instead, put it on a watchlist and check out all the things we mentioned above.
The key thing to look for is authenticity: do the community, crypto personas social media posts, crypto media project articles look legitimate? Is it published by respected people with a strong reputation or by no-names who schill coins left and right? Is the community aware of the potential flaws of the chosen project and is it allowed to discuss them? Are there systematic complaints of sudden bans and censorship by community moderators?
A good project is not so difficult to recognize and once you see posts about it from other people – check their profiles, check the history of their tweets/posts, see if the recommendation comes as a genuine suggestion or an artificial shilling made out of self-interest?
Is Aave legitimate?
AAVE enjoys an excellent reputation among its crypto peers. The team behind it is well respected and proven in crypto circles. The project attracts the attention of a broad crypto base, tweets and posts about it on social media seem to be genuine and uncoordinated, meaning that people recognize it as a legitimate project.
There are tons of positive tweets about the revolutionary potential of Aave’s technology, and a large number of crypto Twitter analysts claim to trade and hold AAVE for the long term. All this places AAVE as one of the hottest coins to hold in the future.
AAVE Price Forecast – summary
After analyzing all of the above about AAVE, we can say that this is a legit project, a leading DeFi protocol that faces stiff competition from similar projects started after it. It enjoys a good reputation in crypto circles and could be a worthy investment in the short and long term.
AAVE is an impressive achievement and one of many precursors to the potential of blockchain and DeFi to revolutionize the world of finance. And unlike many other projects that sound good on paper but no one uses them, AAVE has actually made a functional product that is enjoyed and used by millions of users every month.
Measurement in Satoshis
The following advice is meant only for long-term holders and believers of cryptocurrencies. For short-term speculators and crypto-skeptics, it makes sense to use the USD as the sole yardstick.
You’ll always want to know if it was worth the trading effort instead of just doing BTC. You should also take into account the time you spent trading as that time also has value.
For example, if you spent 15 hours
trading altcoins and ended up having the same amount of Satoshi, it means you wasted those 15 hours and it would have been better if you had just kept BTC.
Since Bitcoin is located between the Fiat sandwich and Alt Coin, you should only ever exchange the BTC value.
If I invest in an altcoin at 0.17 cents at 10k Sats
and in 6 months, I slip at 0.93 cents at 10k Sats. Did I make money with that altcoin?
The answer is no. Your opportunity cost was equal to holding bitcoin since the sat values did not move, the price of BTC going up is what compensated you for your increase in fiat. Not the increase in sats on STEEM.
If, however, you
cashed in STEEM at 20k sats at 0.93 cents over the course of 6 months, this means that you made a profit in satoshi value and USD value (through bitcoin).
Building an investment strategy
I can’t stress enough how important it is to build a real investment strategy. Organize what your goals are, what your risk tolerance is, and how you plan to build a portfolio to achieve those goals rather than simply chasing the flavor of the week.
because? Because it will force you to slow down and make decisions based on rational thinking rather than emotion, and it will inevitably lead you to think long-term.
Defining ROI goals
Put simply, many young investors who are in cryptocurrency have really unrealistic expectations about returns and risks.
Many of them have never invested in any other type of financial activity, and therefore many seem to consider an ROI of 10% in an unexciting month, even if it is more or less what they should be aiming for.
I see a lot of people making their decisions with the expectation of doubling their money every month. This has led to a worrying amount of newbies who have invested too much money too quickly in anything on the front page of CoinMarketCap with a low dollar value per coin hoping that cryptocurrencies will pull them out of their debt or a lifetime of toiling in a cubicle. And all in the next year or two!
Keep in mind that a 10% monthly increase when composed equals an annual return of 313% or more 3 times your money. That might not sound exciting to those who have recently come in and watched their money go 20x in a month on something like Aave before it collapsed again.
Summing it all
Consider the individual risk of each cryptocurrency and start looking for red flags:
- guaranteed promises of great returns (hint: this is a Ponzi)
- Fluctuating allocations that give way to the founder too much
- Vague white papers
- Vague timelines
- No clear use cases
- Github without useful code and scattered tasks
- A team on which it is difficult to find information or even worse anonymous
While all cryptocurrencies are a risky investment, in general it is possible to divide cryptocurrencies into “low” cores, medium-risk speculative, and high-risk speculative.
- Low Risk Core – This is the pairing of crypto exchanges and those that are well established. These are almost certain to be around in 5 years and will recover after any bear market. Bitcoin, Litecoin and Ethereum are in this risk class, and I would also say Monero. Allocate most of your funds in this basket.
- Speculative medium risk – These are cryptocurrencies that generally have at least one product and are reasonably established, but at higher risk than Core. Things like Stellar, Cardano, BNB, NEO.. and so on.
- High Risk Speculative – That’s all that’s been created in recent years, small cap, shillcoin, DeFi … and so on. Most cryptocurrencies fall into this category, most of them will be essentially useless in 5 years. Invest a small portion of your funds and only what you can afford to lose (and I really say this because there’s a big chance you’ll lose everything).