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Aave Coins: Everything you Wanted to Know before Investing

Aave is a DeFi (decentralized finance) protocol that has attracted more than US$25 billion of cryptocurrency pledged since its launch in January 2020. AAVE is the token of this decentralized borrowing and lending platform. Since its ICO back in 2017, this coin has witnessed a dream run. Adjusted for a 100-to-1 swap last year, Aave token price has increased from US$1.76 to just below US$300 at press time. In fact, the all-time high (ATH) of Aave is US$666.86, reached in mid-May 2021. 

If you purchased AAVE at the time of its launch, it would have provided you a return on investment (ROI) of 56,729.71% till now. In 2021 YTD (year-to-date), the price has increased by 226.01%. In terms of market cap, AAVE is the 38th largest cryptocurrency. Its market capitalization is around US$4 billion. 

You must be wondering what’s the secret of this DeFi altcoin. How has this cryptocurrency attracted so much capital within such a short span of time? The main reason is that it brings a practice that was available only to wealthy investors previously. Aave’s value proposition brings a huge value proposition. To understand what’s so special about this DeFi coin, you must know what is it, what are its real-life uses, future price prediction, and many more.  

What is Aave Coin?

Aave is a decentralized and open-source lending protocol, which was founded by Stani Kulechov. It has been created on the Ethereum blockchain. On this platform, users can lend and borrow a wide array of cryptocurrencies. Users can use the Aave protocol for depositing cryptos into a pool for earning interest on their deposits. Other users of this platform can borrow cryptos from the Aave pool by paying interest fees. 

The best thing about this protocol is that the entire lending and borrowing process takes place without the involvement of any bank or middle person. The entire process is handled by smart contracts. These smart contracts are a specialized feature of blockchain technology where automatic execution of events takes place when certain parameters are met. 

Aave platform involves a network of computers along with a series of algorithms for handling deals without having to depend upon any person or institution for taking care of funds. 

Aave (AAVE) Coins: Facts & Figures

All these facts and figures will help you to make a decision on investing in Aave’s governance token by making AAVE price predictions:

  • AAVE cryptocurrency current price: US$291.70 (as of Sep 21, 2021)
  • Trading Volume (24h volume): US$356,647,232
  • All-Time High (ATH) Price: US$666.86 (reached on May 18, 2021)
  • All Time Low (ATL) Price: US$25.97 (reached on Nov 05, 2020)
  • 24h Low: US$275.71 (as of Sep 21, 2021)
  • 7d Low: US$275.71 (as of Sep 21, 2021)
  • YTD (Year-To-Date) Return: +226.01% (Jan 1, 2021 to Sep 21, 2021)
  • Market Cap: US$3,846,394,746
  • Crypto Rank (in terms of market cap): 38
  • Fully Diluted Market Cap: US$4,689,619,947
  • Max Supply: 16,000,000
  • Total Supply: 16,000,000
  • Circulating Supply: 13,185,245.02 AAVE (82%)
  • Total Value Locked (TVL): US$13.96 billion

What Problems Does AAVE Solve? How does Aave Work?

Some of the most pressing problems of the traditional lending system are tackled by the Aave protocol. The main goal of this project is to convert the centralized format of the financial lending system to a decentralized one, which will not involve any middleman or bank. 

Let me explain it with an example to make it easier for you to understand. 

  • In the case of a traditional lending scenario, it is the banks or financial institutions that lend out funds to the borrowers. In this process, the interest is earned by the bank or the financial institution that is lending the funds. Here, the profitable interest earnings are gained by the lending banks/institutions despite the fact that they are lending by utilizing your money, deposited to these banks/institutions by you and me. You don’t get any profit percentage of these interest earnings. 
  • In the case of Aave’s decentralized lending ecosystem, the entire arrangement changes. If you are lending out your cryptocurrency, the entire process takes place in a trustless and permissionless manner. The earned interest from lending your cryptocurrency funds is paid directly to your network wallet. 

Aave protocol has revolutionized the entire process of lending and borrowing by bringing in a peer-to-peer lending system. It provides flash loans instantly through a P2P lending system. This has helped to create and develop a decentralized finance sector that has the same goal. 

What are the Benefits of AAVE?

Aave’s decentralized financial protocol brings in transparency over the processes and activities of the network. Thanks to blockchain technology, Aave’s lending system allows the entire community to see how the lending and borrowing process is carried out in the system. 

The major benefits of the Aave protocol are:

  • Open-source nature of the decentralized finance sector.
  • Non-custodial platform.
  • Borrowers get access to cryptos without any outright ownership.
  • A variety of interest rate options (including variable and fixed interest rates) are available. 
  • This next-gen lending protocol brings in the next level of privacy where you don’t have to fill in lengthy KYC (Know Your Customer) or AML (Anti Money Laundering) documentations. 
  • A wide array of cryptocurrency lending pools are available for the users of the Aave protocol and they are:
  • Dai stablecoin (DAI)
  • USD coin (USDC)
  • True USD (TUSD)
  • Tether (USDT)
  • Synthetix USD (sUSD)
  • Binance USD (BUSD)
  • Ethereum (ETH)
  • ETHlend (LEND)
  • Basic Attention Token (BAT)
  • Kyber Network (KNC)
  • Chainlink (LINK)
  • Decentraland (MANA)
  • 0x (ZRX)
  • (wBTC)
  • Wrapped Bitcoin
  • Synthetix Network (SNX)
  • Augur (REP)
  • Maker (MKR)

Aave AAVE Price Prediction 2021 to 2025

Aave is one of the leading most names in the DeFi lending protocols. To understand whether you should invest in AAVE, you must know the Aave price forecasts for the coming few years. 

AAVE Price Forecast 2021

The price of AAVE is expected to increase to anywhere from US$450 to US$619 by the end of 2021. 

AAVE Price Forecast 2022

AAVE price is expected to increase to US$950 by 2022-end. 

AAVE Price Forecast 2023

The price of AAVE is expected to increase to anywhere from US$1,000 to US$1,200 by the end of 2023. 

AAVE Price Forecast 2024

By 2024-end, the price of AAVE will be anywhere around US$1,500.

AAVE Price Forecast 2025

By the end of 2025, the AAVE to USD exchange rate is expected to increase to US$1,750. 

AAVE Coin Price Prediction in the Next 5-years (2026)

According to Wallet Investor, the price of AAVE coins can reach as high as US$4,590.330 after 5-years.

How to Buy Aave (AAVE)?

You can buy Aave (AAVE) coins from almost all leading cryptocurrency exchanges. Some of the best ones are mentioned below:

  • Coinbase: Best in the United States.
  • Binance: Canada, Australia, Singapore, United Kingdom, and most parts of the world. The US residents can buy AAVE through Binance.
  • Easy Crypto: Best to buy Aave in South Africa, New Zealand, and Australia. 
  • Uphold: This cryptocurrency exchange is best for the residents of both the United States and the United Kingdom. If you are a resident of the United States, you can claim a debit card for earning cash backs and cryptos. 

How to Store Aave?

Any crypto wallet that supports ERC-20 tokens can store AAVE coins. Some of the best crypto wallets for storing Aave tokens are:

  • Ledger Nano X
  • Ledger Nano S
  • MyEtherWallet (MEW)
  • MyCrypto

Invest in AAVE and Other Cryptocurrencies

You can buy and sell AAVE and other cryptocurrencies against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of crypto exchanges (centralized or decentralized exchanges). Use Dollar Cost Averaging DCA strategy to invest in cryptos to minimize the risks associated with high volatility. 

If you want to increase your investment explosively in the coming 5-to-10 years, buy crypto coins now. Keep an eye on the market news, price statistics, block times, blockchain news, and others to time your trading of Defi systems and tokens for maximum profit. 

You can also diversify your crypto coin portfolio by including other cryptocurrencies such as AAVE, Ripple XRP, Bitcoin Ether ETH, Bitcoin Gold (also called Bit Gold), Bitcoin Cash BCH, Basic Attention Token, Ethereum Classic, Binance Coin, Wrapped Bitcoin (some also call it wrap bitcoin or wBTC), USD Coin, Gemini Dollar, ERC20 tokens (created on Ethereum blockchain), nonfungible tokens NFTs, and others. 

Also, invest in various types of stocks, mutual funds, index funds, real estate, and others to improve your personal finance. If possible, get help from a portfolio manager or wealth management firm for maximum return. 

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NapBots provides you various indices that include a basket of tokens with high market capitalization and are categorized by theme (such as Solana, NFT, DeFi, and others). This platform introduces an intuitive interface as well as advanced allocation tools for enabling new investors to create and manage advanced crypto indices easily.

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