Aave Price Prediction 2024, 2025, 2030

As one of the top-ranked DeFi protocols and boasting an excellent security record, Aave’s future price seems quite easy to predict. But, with regulators ready to target protocols once they’ve finished regulating leading layer 1 blockchains and the fact that Aave operates with a decentralized governance model, everything is suddenly not as clear cut as it first seemed.

Here, we’ll dive into our Aave price prediction, look at what impacts the price of AAVE, and how we can use it to create a well-informed price forecast.

Aave Coin Price Prediction 2024-2030

  • Aave’s token, AAVE, debuted in October 2020 at $52.68 and was created through a token migration of the old EthLend, LEND, token to AAVE tokens.
  • Aave is one of the top ranked and most long-lived DeFi protocols by total locked value (TVL) and has an excellent security track record.
  • AAVE hit its all-time high (ATH) of $666.86 on May 18th, 2021.
  • Toward the end of 2023, AAVE began to test the psychological barrier of $100 after starting the year at $51.92 and spending the majority of the year trading between $50–$75.
  • With the Bitcoin Halving coming in 2024—and its effects to be felt in 2025—regulations falling into place and crypto adoption gaining, we forecast that AAVE has a positive future ahead of it, with highs of $436 in 2025.

Year Low Price Average Price High Price
2024 $98 $125 $175
2025 $220 $382 $436
2030 $250 $325 $530

Aave Price History

According to CoinMarketCap data, the AAVE token launched on October 5th, 2020, with a price of $52.68, the same day the token migration from the old EthLend, LEND, token to the new AAVE token was initiated. A month later, AAVE hit its all-time low of $27.72 before steadily rising, along with the rest of the crypto market, in value to start 2021 at $87.54, a 66% increase on its early October price.

The AAVE token then went on to hit its ATH during the bull run in 2021, a price of $666.86 on May 18th. From there, it took a sharp 1 week decline to $293.32 on May 24th, a loss of 56%. After that, AAVE struggled to recover and was on a downward trajectory, even as many other currencies, including Bitcoin and Ethereum, were hitting ATHs in November of 2021.

AAVE’s steady decline continued until around June 2022, when it started to find its range between $50 and $100. AAVE started 2023 at $51.92, and has since traded between $50 and $95, rising and falling with some of the biggest pieces of news in the crypto markets, such as the SEC suing Binance and its CEO on June 5th and the SEC charging Coinbase on June 6th—after which AAVE’s price decline by 16%.

After trading between $50 and $75 for the middle of 2023, AAVE has made a late charge toward $100 at the end of the year. From a low of $52.12 on September 12th it climbed over 90% to test $100 on November 6th—the first time it has tested this mark since since August 2022. Time will tell if AAVE can climb above this psychological resistance and turn it into important support for 2024.

Key Points in Aave’s Price History

  • AAVE entered the market with a price of $52.68 on October 5th, 2020, after the migration from the old LEND token was initiated. AAVE then hit its all-time low of $27.72 exactly a month later.
  • From that low, it climbed upward, and during the bull run of 2021, on May 18th, AAVE hit its ATH of $666.86. It did not, unlike most other coins, go on to create new ATHs that November.
  • Instead, the AAVE token price continued on a steady downward trend, eventually settling in a range of $50 to $95 in June 2022.
  • AAVE started 2023 at $51.92 and has spent most of the year trading between $50 and $75.
  • In two months, from September 12th to November 6th, the AAVE price has climbed over 90% from $52.12 to test the psychological resistance of $100.

Aave Price Prediction for 2024

Looking ahead to 2024 there are many positives for Aave. The first is that Aave is an established and battle-tested DeFi protocol that is trusted by many DeFi users, both institutional and independent (Aave’s Aave Arc serves institutional investors from permissioned and KYC-compliant pools of liquidity). As the popularity of DeFi continues to grow, Ethereum’s 2nd most popular DeFi dApp, when sorted by volume on DAppRader, will continue to see more users, and the token price will benefit from this activity.

There are many Bitcoin ETFs waiting for approval by the SEC, and the approval of one or numerous of these—which many expect to happen soon—will be positive news for the whole crypto market.

However, what is interesting for Aave’s future is the arrival of Ethereum ETF proposals, which will probably happen in 2024. The current SEC chair, Gary Gensler, refused to say if Ethereum was a security or not during a hearing in April 2023. However, in 2018, William Hinman, director of the SEC’s corporate finance division, said the Ethereum was not a security.

If an Ethereum ETF is passed—though what looks like a lengthy legal at this point—it will open the gates for institutional investors to begin seriously looking into Ethereum-based DeFi, where Aave is one of the top protocols. On the other hand, if the SEC decides that Ethereum is a security, it could be bad news for all altcoins, especially those based on Ethereum, as they track the Ethereum price quite closely.

Chart of AAVE and ETH prices

There is also the news of the Bitcoin Halving event, set to take place in early 2024. While the event itself does not historically have an immediate impact on the price of cryptocurrencies, this year is different, as interest in and adoption of cryptocurrencies are at their highest point ever.

News that could have a negative impact on Aave are any hacks that might happen to DeFi protocols or, even worse for the price of AAVE, hacks on the Aave protocol itself. Each version of the Aave protocol undergoes several security audits before release to minimize the risk of hacks, but the risk can only be minimized, not eliminated.

Finally, there is also the progress made by the Aave protocol. Because it is governed through a DAO, who make and approve proposals for changes and improvements to the Aave protocol, there is no roadmap for the future growth and development of Aave. Meaning that, as of now, there are no future developments for people to speculate on with the price of AAVE.

With all this in mind, our Aave price forecast for 2024 is a positive one, so long as the news for the wider market stays positive throughout the year. For 2024, we predict a low of $98, a high of $175, and an average of $125.

Aave Chart with 2024 price predictions

Aave Price Forecast Long Term Outlook – 2025-2030 Predictions

As we look further into the future, trends and news events become harder to predict with any certainty, and more grey areas enter into any Aave coin forecast. However, there are broad strokes that we can take into account for a long term Aave price prediction.

Firstly, looking at historical trends after all previous Bitcoin Halving events, Bitcoin and altcoins tend to hit new ATHs 12–18 months after the event. With the Bitcoin halving happening in early 2024, these ATHs will fall in 2025. This is expected to be the main narrative throughout 2025 and the main driver of price.

So long as no big and bad news arises to distract from this bull run, and regulatory frameworks should not be throwing up any major surprises by this point, our Aave price prediction for 2025 has AAVE hitting highs of $436, with lows of $220 and a median price of $382.

2030 Price Predictions aave price chart

Looking even further ahead to 2030, we can expect the global regulatory framework for institutional investors to be well laid out, and many of them to have already diversified their portfolios to include the now very popular DeFi products. With Aave being the leading DeFi lending platform right now, along with its excellent security record, it is very well placed to be one of the DeFi protocols most trusted and used by institutional investors.

We expect the global adoption of cryptocurrencies to have significantly grown by 2030, with many more members of the public becoming familiar with and using some of the functions of DeFi, like the over-collateralized loans offered by Aave.

One big cloud that hangs over forecasts of the Aave crypto price is the lack of a roadmap for the protocol. However, decentralized governance has been taking place on Aave since the beginning of 2022 and has so far been successful in upgrading and managing the direction of the protocol. The longer this happens, the more people are likely to trust the mechanisms of DAO governance and the future of the Aave protocol.

In 2030, we will also be coming down off the highs of 2029 that have resulted from the 2028 Bitcoin Halving. Our Aave price prediction for 2030, after all these insights, is a high of $530, a low of $250, and an average price of $325.

Potential Highs & Lows of Aave Coin Price

As with all assets, the price of AAVE will rise and fall throughout the year. Past data can, however, help us to create informed price predictions for the future. As a result of looking at these historical data points, we have the following price predictions for AAVE.

Year Low Price Average Price High Price
2024 $98 $125 $175
2025 $220 $382 $436
2030 $250 $325 $530

What do Other Analysts Predict for Aave Coin?

Aave is one of the most popular DeFi protocols available to users. As such, there are some who speculate on the value of the protocol’s token.

The AMBCrypto website predicts that the AAVE token will hit $115.48 by the end of 2024 and rise steadily through 2030, where a high valuation of $144.36 is predicted.

AMBCrypto

CoinCodex predicts a varied future for AAVE, predicting a low of $89.82 for 2024 with a high of $702.50. Their prediction for 2025 is a little more stable, with a low of $242.44 and a high of $603.26.

CoinCodex

The Changelly Blog predicts that AAVE will surpass $1000 for the first time in 2030, with a maximum price of $1,199.50.

Changelly

AAVE is also predicted to pass $1,000 for the first time in 2030 on the DigitalCoinPrice website, hitting highs of $1,029.18. Highs for the near future, in 2024 and 2025, are $251.10 and $357.80.

DigitalCoinPrice

Bitnation forecasts that AAVE will hit a high of $274.32 in 2024 and $372.29 in 2025. With respective lows of $215.53 and $313.50.

Bitnation

What is Aave Coin and What is it Used For?

AAVE is the native token of the algorithmic lending and borrowing protocol that goes by the same name, Aave. Aave was originally called EthLend before rebranding to Aave and swapping the LEND tokens of the ETHLend platform for new AAVE tokens.

The Aave protocol operates across 7 different networks and over 14 different markets, and, at the time of writing, had over $8 billion worth of locked liquidity. According to DappRadar, Aave is the 4th and 5th (version 3 and 2 of the protocol, respectively) most popular dApp in all of crypto when ranked by TVL.

Aave locked liquidity counter

What Does the Aave Protocol Do?

In the first line of the Aave developer documentation, the protocol is described as a “decentralized non-custodial liquidity protocol where users can participate as suppliers, borrowers or liquidators.” Let’s break this down.

Aave allows any indiscriminate individual to borrow cryptocurrency by putting up collateral. The assets they borrow is deposited into the protocol by Suppliers. A Supplier is any indiscriminate person who owns cryptocurrency and wants to put it to work to “become the bank”.

What does “Become the Bank” Mean?

Become the bank is a phrase that is less common in crypto than it once was but still embodies the purpose behind cryptocurrencies and Bitcoin. Become the bank means to literally become your own bank by becoming the custodian of your own funds. This can be done by using a non-custodial wallet and ensuring that you properly look after your seed phrase.

Once you do that, you are your own bank. However, banks also use the money they store to make money, mainly by lending it out to others in the form of mortgages and loans. Owners of cryptocurrencies who store their funds in non-custodial wallets can also do this by using protocols like Aave. Allowing them to fully “become the bank” and facilitate financial activity in the DeFi economy.

How Does Aave Work?

The Aave protocol is non-custodial, meaning everything runs through smart contracts, and there is no intermediary between the Supplier and the Borrower. Suppliers deposit the cryptocurrency, e.g., ETH, USDC, USDT, they want to lend into the protocol. This is now ready to be borrowed, and Suppliers will earn a variable APY on their deposit depending on how much of the pool their asset is in is being borrowed.

A Borrower selects which pool they want to borrow from, i.e., which cryptocurrency they want to borrow, and deposits their applicable cryptocurrency as collateral (collateral is limited to particular currencies). They can then use the assets they borrowed. These loans are over-collateralized loans because the Borrower must deposit more value than what they are borrowing. This allows for fluctuations in the valuation of token prices before liquidation.

Loans are taken without an end date, meaning the Borrower can keep the loan for as long as they want, so long as their collateral remains in good standing compared to their loan and the interest that accumulates over time. Interest rates for loans through AAVE fluctuate between 2–30%, depending on the asset borrowed and the utilization rate of the particular pool a user borrowed from.

When a Borrower’s collateral-to-loan ratio gets near to equal, they must either pay back the loan (in the same currency as that which they borrowed), deposit more collateral, or have their collateral liquidated, meaning that they keep the loaned assets and lose their deposited collateral.

This collateral is then sold off to a Liquidator at a slightly discounted price for the asset, and the funds received are then used to top up the pool from which the loan was drawn.

Flash Loans

As an alternative to the over-collateralized loans described above, Aave, and many other lending protocols, also permit “Flash Loans,” which don’t require the borrower to put up capital. These are aimed at developers who can write smart contracts that fulfill the requirements of these loans—although some options created for non-developers are detailed on Aave’s Flash Loans page.

A flash loan allows an individual to borrow any amount of funds from the protocol so long as they return them within the same block as they were taken out. This is mainly for arbitrage, taking advantage of the difference in price between the same asset on two different markets. Flash loans have a flat fee of 0.09%.

Security of the Aave Protocol

Aave is a completely open sourced protocol, which means anyone can check the code and build a front end or interface that links to the Aave protocol. Numerous security audits and formal verifications have been conducted by different companies on each version of the protocol, and there is also a bug bounty for white hat hackers to be compensated for anything they find.

For financial security, the Aave protocol also features a Safety Module. This is an insurance fund for the protocol, funded by users. Users deposit ETH or AAVE into the Safety Module and earn a portion of the platform’s fees as a reward. The contents of the Safety Module cover a certain percentage of the funds locked in the Aave protocol should a shortfall event occur, i.e., a hack or technological failing that resulted in the loss of funds. Therein, with the Safety Module in place, the Aave protocol is insurance in a non-custodial and decentralized manner.

What is the AAVE Token Used for?

AAVE is an Ethereum native token, ERC-20, with over 160,000 holders and two use cases in the Aave economy and ecosystem.

Protocol Governance: The Aave protocol has one of the most mature governance programs of any Ethereum dApp. The AAVE token is used to vote on Aave Improvement Proposals (AIPs) that are proposed, discussed, and refined in a governance forum before a vote occurs. Each AAVE has equal voting power, and voting power can be delegated to Protocol Politicians. AAVE is also required to create proposals.

Safety Module Staking: The Safety Module is the insurance fund for the AAVE protocol, and holders of AAVE can stake their AAVE to the Safety Module to earn rewards for securing the protocol.

Aave Ecosystem Overview

Aave Coin Overview

Hundreds of millions of dollars of AAVE are exchanged every day, and these stats help us to inform Aave price predictions.

Cryptocurrency Aave
Ticker Symbol AAVE
Rank #39
Price $97.88
Price Change 24H 0.00%
Market Cap $1,431,973,889
Circulating Supply 14,630,011 AAVE
Trading Volume 24H $265,414,501
All Time High $666.86
All Time Low $27.72

What Influences the Price of Aave?

Being a dominant protocol in the DeFi space means that price influences for AAVE come from many directions, some of which it can weather better than others.

Crypto and DeFi Regulation and Adoption

As the Bitcoin ETF argument wages on, the SEC suing Binance and Coinbase, and the SEC’s case against Ripple is yet to be settled, all is still not plain sailing in the world of crypto, and positive and negative news affects the price of most coins.

In the future, Aave is both a gainer and a loser on this topic. As regulators start to zoom in on different sectors of the crypto economy, DeFi is almost certainly to be one of their first targets.

Aave position at the top of the DeFi stack means that it will be squarely in the crosshairs of any regulators and looked at with intense scrutiny. This could prove to be both good and bad news for the price of AAVE, with significant drops in price coming if regulators have an issue with decentralized lending protocols and price rises occurring once it seems like the Aave protocol gets the blessing of regulators.

Bitcoin Halving

Bitcoin Halving events affect the whole crypto market. Historically, new ATHs have come about 12–18 months after each Halving, before a crash in price that leaves coins around 75% higher than before the Halving-induced bull run.

Hacks

A hack of the Aave protocol, depending on how severe it is, is likely to decimate the price of AAVE before it initiates recovery. However, Aave does have its Safety Module, which should help to mitigate some, if not all, of the damage done by a hack.

Large and well-publicized hacks on other protocols could also have a negative effect on the Aave price as those new to the market exit their positions in DeFi protocols, making Aave guilty by association. Conversely, these hacks may also have a positive effect on the price of AAVE as investors move into more secure DeFi assets.

No Roadmap

As noted, Aave is fairing excellently under the guidance of its DAO. However, this limits the speed at which the protocol can grow, adapt, and respond, potentially leaving it vulnerable to being overtaken by faster evolving competitors or not being quick enough to react to a hack, as with what happened with the DAO hack on Ethereum in 2016.

Is Aave a Buy?

As one of the most popular DeFi protocols and the top P2P Lending protocol, according to DappRadar, Aave is set to become one of the most popular Dapps in the DeFi ecosystem as the inevitable adoption of crypto creeps over the globe. Its decentralized governance model and non-custodial nature might also prove tricky for regulators should they try to clamp down on DeFi activity to protect TradFi institutions.

With its Safety Module acting as an insurance fund and a practice of having multiple audits completed on its smart contracts, along with formal verification and an active bug bounty, Aave can also be counted amongst the most secure dApps out there.

Finally, Aave also has a deflationary token model, meaning that the value of tokens still in circulation increases as others are taken off the market at burnt. This, along with the elements of security and the continued adoption of crypto and blockchain applications, makes Aave a buy.

Best Place to Buy Aave

Binance is the largest crypto exchange in terms of daily trading volume and number of users, which is one of the reasons we chose it as the best place to buy Aave.

Aside from that, Binance offers over 350 cryptocurrencies, including Aave, that you can buy on the spot market with 0.1% fees. You can further lower the fees if you pay them with BNB coins or make more than $1 million trading volume within a 30-day period.

Moreover, you can buy Aave with a card by purchasing USDT first and instantly converting it to AAVE. This is slightly more expensive method, but it’s faster than waiting for bank transfer funds to clear.

Binance exchange

If you’re looking to earn more AAVE tokens, use Binance Earn. As of this writing there is a flexible lock with a 0.17% APR. Occasionally, Binance opens new locking periods with higher APR. Make sure to keep an eye on that.

As a Binance user, enjoy borrowing funds with Binance Lend, copy trading and trading bots, get access to new tokens with Binance Launchpad and more.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

Conclusion

Any Aave price prediction builds on both technical charts and informational analysis to understand how a coin’s price might react to future events. Unlike many others, Aave is the governance token of a well-established and successful protocol that has processes in place to mitigate any attacks and problems that may take down other, less-well-prepared protocols.

All that being said, the established nature of a protocol can often be a sign of price stability and a positive outlook on the future appreciation of the token’s price. We have also found that the best place to buy crypto is Binance.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.

References

FAQs

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Ben Beddow
Editor
Ben Beddow
Editor

Ben has been a freelance writer for almost a decade and started writing in the cryptocurrency space in 2019. Since then he has produced both technical and promotional content for layer 2 protocols (Milkomeda), blockchain development companies (dcSpark and Emurgo), and written content for his own ecosystem mapping website.