In this guide, we will share our and the market’s view of the future of Aave as we discuss AAVE price forecasts for 2022 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.
Table of Contents:
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 CaptainAltcoin team created a price prediction model with a multifaceted approach to crypto that takes into account both technical analysis and fundamental evaluation of each project.
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 2022
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 $127.79 in 2025.
Aave Price Forecast 2030 – 2040
How much will Aave be worth in 2030?
Our forecast model sees Aave reaching $319.47 in 2030.
How much will Aave be worth in 2040?
Our forecast model sees Aave reaching $638.94 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 $36.06. In the long term (8-10 years), it could jump to $319.47 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 $319.47 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 Aave price explode and reach $638.94 in the distant future.
What is the short-term forecast for Aave?
Aave will reach $36.06 over the next 90 days, which is a 43% change from the current price which hovers around $63.26.
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 $67.57 tomorrow.
Fundamentals
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.
What does Aave do?
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.
Aave forecast – team
Very transparent and professional. No action on shilling prices or comments, focused on construction.
Aave, and its predecessor ETHLend, were founded by Stani Kulechov. At the time, he was frustrated by the lack of lending applications on Ethereum – and his project was built before decentralized finance even existed.
Kulechov is a serial entrepreneur who attended law school and started programming when he was a teenager. It was an early adopter of the blockchain space. The CEO said he wants to rename ETHLend as Aave so that the company can offer a wider range of services in addition to Ether.
lending.
According to Kulechov, Aave’s main target market is people who are already engaged in the cryptocurrency community.
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.).
Tokenomics
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
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.
Speculative potential
Now, we’re talking about the really impactful market forces.
Unfortunately, the
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.
Where and how to buy AAVE
Here’s how to buy AAVE:
- Download an AAVE wallet (Atomic Wallet, Look, Trust Wallet usw)
- Create your AAVE address
- Find an exchange listing AAVE (Binance, Kraken, Kucoin) and buy AAVE
- Transfer AAVE from the exchange to your wallet
AAVE Wallets
AAVE is an ERC-20 token and as such enjoys the support of almost all known crypto wallets. Some of the best to use are Trust Wallet, Guarda or Atomic Wallet. It also has integration with a hardware wallet such as the Ledger Nano X or S.
