Aave is a decentralized liquidity protocol enabling users to lend or borrow cryptocurrencies. Lenders earn interest by providing liquidity, while borrowers can take overcollateralized loans or risk-free flash loans, repaid within the same block. Aave’s V3 version offers optimized yield generation and borrowing power, enhancing capital efficiency. Additional features include real-time interest accumulation via aTokens, stable interest rates, and credit delegation. Aave is governed by community-led decisions, fostering engagement on platforms like Discord.
What is Aave?
Aave is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrency. It is built on the Ethereum blockchain and uses smart contracts to automate the lending and borrowing process, enabling operations without third-party intermediaries.
How does Aave work?
In Aave, users deposit cryptocurrencies which are pooled together. Borrowers can take loans from this pool while the depositors earn interest. The amount that can be borrowed is determined by the value of the deposited collateral and the specific loan-to-value (LTV) ratio of the borrowed asset.
What is Aave 3.0?
Aave 3.0 is the latest version of the Aave protocol, a decentralized finance platform on the Ethereum blockchain. Key features include Efficiency Mode for optimizing correlated asset borrowing, Isolation Mode for managing new asset risk, granular control over borrowing power, advanced risk management tools, and decentralization through asset listing admins. It also introduces a variable liquidation close factor, supports EIP 2612 and EIP 712, reduces gas costs by 20-25%, and optimizes the stable rate calculation strategy.
How is Aave 3.0 different?
Aave 3.0 introduces several key improvements and new features compared to its previous version:
- Efficiency Mode (E-Mode): Optimizes borrowing of price-correlated assets.
- Isolation Mode: Caps borrowing against new assets to manage liquidity and solvency risk.
- Granular Borrowing Power Control: Allows for adjustment of an asset’s borrowing power without impacting existing borrowers.
- Advanced Risk Management Features: Includes supply and borrow caps, risk admins for quick parameter changes, and a Price Oracle feature for Layer 2 networks.
- Decentralization with Asset Listing Admins: Enables custom strategies for asset listing and allows permissionless asset listings.
- Variable Liquidation Close Factor: Fully liquidates a position as it nears insolvency.
- Various Other Improvements: EIP 2612 and EIP 712 support for credit delegation, 20-25% reduction in gas costs, more modular code, and an optimized stable rate calculation strategy.
About AAVE token
| Metrics | Value |
|---|---|
| Rank | #53 |
| Aave Price (AAVE) | $94 |
| Market Cap | $1,384,984,379 |
| Fully Diluted Market Cap | $1,502,963,656 |
| Total Value Locked (TVL) | $8,209,868,026 |
| Circulating Supply | 14,735,505 AAVE |
| Percentage of Max Supply | 92% |
| Max Supply | 16,000,000 AAVE |
| Total Supply | 16,000,000 AAVE |
How to buy AAVE tokens?
You can buy Aave from crypto exchanges like Binance, Kucoin, Uniswap, Gate etc.
Aave Price Prediction 2024
Aave token in 2024 is expected to be bullish. From the low of $79.55, the AAVE token could go up to as high as $157.942.
| When | Maximum Price | Minimum Price |
| February 2024 | $111.371 | $79.551 |
| March 2024 | $94.665 | $78.888 |
| April 2024 | $78.888 | $65.740 |
| May 2024 | $71.716 | $59.763 |
| June 2024 | $73.150 | $60.959 |
| July 2024 | $87.780 | $73.150 |
| August 2024 | $98.314 | $81.928 |
| September 2024 | $100.280 | $83.567 |
| October 2024 | $105.294 | $87.745 |
| November 2024 | $131.618 | $109.682 |
| December 2024 | $157.942 | $131.618 |
Aave Price Prediction 2025
| When | Maximum Price | Minimum Price |
| January 2025 | $90.52 | $73.00 |
| February 2025 | $95.28 | $68.06 |
| March 2025 | $119.10 | $96.05 |
| April 2025 | $141.79 | $101.28 |
| May 2025 | $154.12 | $124.29 |
| June 2025 | $184.94 | $132.10 |
| July 2025 | $181.32 | $146.22 |
| August 2025 | $217.58 | $155.42 |
| September 2025 | $271.98 | $219.34 |
| October 2025 | $339.97 | $242.84 |
| November 2025 | $370.57 | $298.85 |
| December 2025 | $407.63 | $291.16 |
- Minimum share price target for Aave in 2025: $407.63
- Maximum share price target for Aave in 2025: $68.06
Aave Price Prediction 2026
| When | Maximum Price | Minimum Price |
| January 2026 | $489.15 | $394.48 |
| February 2026 | $391.32 | $279.51 |
| March 2026 | $301.02 | $242.75 |
| April 2026 | $225.76 | $161.26 |
| May 2026 | $167.06 | $134.73 |
| June 2026 | $128.51 | $91.79 |
| July 2026 | $102.81 | $82.91 |
| August 2026 | $79.70 | $56.93 |
| September 2026 | $99.62 | $80.34 |
| October 2026 | $124.53 | $88.95 |
| November 2026 | $136.98 | $110.47 |
| December 2026 | $153.42 | $109.58 |
Aave Price Prediction 2027
| When | Maximum Price | Minimum Price |
| January 2027 | $184.10 | $148.47 |
| February 2027 | $147.28 | $105.20 |
| March 2027 | $113.29 | $91.36 |
| April 2027 | $96.30 | $68.78 |
| May 2027 | $80.89 | $65.23 |
| June 2027 | $62.22 | $44.45 |
| July 2027 | $49.78 | $40.14 |
| August 2027 | $38.59 | $27.56 |
| September 2027 | $48.24 | $38.90 |
| October 2027 | $60.29 | $43.07 |
| November 2027 | $66.32 | $53.49 |
| December 2027 | $74.28 | $53.06 |
Aave Price Prediction 2028 to 2030
| When | Maximum Price | Minimum Price |
| January 2028 | $89.14 | $71.89 |
| February 2028 | $71.31 | $50.94 |
| March 2028 | $64.83 | $52.28 |
| April 2028 | $55.10 | $39.36 |
| May 2028 | $46.29 | $37.33 |
| June 2028 | $42.08 | $30.06 |
| July 2028 | $52.60 | $42.42 |
| August 2028 | $67.85 | $48.47 |
| September 2028 | $84.82 | $68.40 |
| October 2028 | $106.02 | $75.73 |
| November 2028 | $116.62 | $94.05 |
| December 2028 | $130.62 | $93.30 |
| January 2029 | $90.12 | $72.67 |
| February 2029 | $106.02 | $75.73 |
| March 2029 | $132.52 | $106.87 |
| April 2029 | $157.77 | $112.69 |
| May 2029 | $171.49 | $138.30 |
| June 2029 | $205.78 | $146.99 |
| July 2029 | $195.98 | $158.05 |
| August 2029 | $163.32 | $116.66 |
| September 2029 | $204.15 | $164.64 |
| October 2029 | $255.19 | $182.28 |
| November 2029 | $280.71 | $226.38 |
| December 2029 | $314.39 | $224.57 |
| January 2030 | $306.23 | $246.96 |
| February 2030 | $367.47 | $262.48 |
| March 2030 | $349.97 | $282.24 |
| April 2030 | $291.64 | $208.32 |
| May 2030 | $364.55 | $294.00 |
| June 2030 | $455.69 | $325.50 |
| July 2030 | $501.26 | $404.24 |
| August 2030 | $561.41 | $401.01 |
| September 2030 | $546.83 | $440.99 |
| October 2030 | $656.20 | $468.71 |
| November 2030 | $624.95 | $503.99 |
| December 2030 | $520.79 | $371.99 |
Aave Price Target in INR
|
Year WISE
(in INR) |
Maximum Price | Minimum Price |
| 2024 | ₹13,130.98 | ₹4,968.52 |
| 2025 | ₹34,648.13 | ₹5,785.05 |
| 2026 | ₹42,066.91 | ₹4,895.64 |
| 2027 | ₹16,016.58 | ₹2,397.97 |
| 2028 | ₹11,494.24 | ₹2,644.98 |
| 2029 | ₹27,980.88 | ₹6,468.06 |
| 2030 | ₹59,714.04 | ₹18,956.84 |
The projected Aave price targets in INR for the coming years indicate a potential increase, with the maximum price estimated to reach ₹59,714.04 by 2030 from a high of ₹9,915.00 in 2023.
The minimum price forecasts also show an upward trend, suggesting an increase from ₹102.09 in 2023 to ₹18,956.84 in 2030, pointing to a possible floor in price even in bearish scenarios.
Particularly noteworthy is the substantial increase in the maximum predicted price from 2025 onwards, with the value almost tripling from ₹34,648.13 in 2025 to ₹59,714.04 in 2030.
However, the range between the minimum and maximum prices forecasted each year highlights the potential volatility and uncertainty in the crypto market. This underscores the need for investors to exercise caution and perform their due diligence.
Is Aave Protocol Safe?
Aave has been considered one of the more secure and reputable decentralized finance (DeFi) platforms in the crypto industry.
Here’s why:
- Open-source Code: Aave is built on blockchain technology, which is open-source by nature. This means that the code is accessible to everyone to audit and scrutinize, making it hard for the developers to have hidden bugs or backdoors in the code.
- External Audits: Aave has undergone numerous security audits by external firms, and any identified issues have been fixed.
- Insurance Cover: Aave introduced a safety module that acts as a sort of insurance cover to protect against unforeseen issues.
- User Reputation: Aave has a substantial user base and has been able to build a strong reputation within the crypto community.
However, this doesn’t mean it’s risk-free. As with all DeFi platforms, there are inherent risks involved, including smart contract bugs, systemic risks in the crypto market, and the potential for human error when interacting with complex financial protocols.
In addition, the regulatory environment around DeFi is still unclear, so there are potential legal and regulatory risks involved as well.
It’s important to do your research, understand the risks involved, and possibly seek advice from a financial advisor before getting involved in DeFi platforms like Aave.
Aave Protocol Funding: How much did Aave raise?
Aave, the renowned decentralized finance (DeFi) protocol, has to date raised a substantial total of $48.7 million through various funding rounds. The initial raise began with an Initial Coin Offering (ICO) on November 30, 2017, through which the protocol successfully raised $16.2 million. Aave then undertook several private token sales, with the first taking place on July 8, 2020, during which it raised $4.5 million with ParaFi Capital as the investor.
Subsequently, on July 15, 2020, another private token sale was conducted, yielding $3 million from investors including Framework Ventures and 3AC. A strategic funding round on October 12, 2020, led to a notable raise of $25 million, supported by a slew of investors such as Blockchain Capital, Blockchain.com Ventures, and Standard Crypto, among others. This progressive and successful fundraising underscores Aave’s continuous growth and substantial investor interest in its potential within the burgeoning DeFi landscape.
FAQ
How can I lend crypto on Aave?
To lend crypto on Aave, users need to connect a digital wallet to the platform, and then deposit their crypto assets into Aave’s liquidity pool. In return, lenders earn interest paid out by the borrowers.
How can I borrow crypto from Aave?
To borrow on Aave, you need to deposit a cryptocurrency as collateral. The platform then calculates the amount you can borrow based on your collateral’s value and the volatility of the asset. The borrowed crypto is deposited into your connected wallet.
What are Aave’s Flash Loans?
Flash Loans are an innovative feature offered by Aave. These are loans that must be borrowed and repaid within the same blockchain transaction block. They are designed for developers to take advantage of arbitrage opportunities in the crypto market.
What happens if the value of my collateral drops in Aave?
If the value of your collateral drops below a certain threshold (Loan-to-Value ratio), Aave can initiate a process called liquidation. During liquidation, up to 50% of the pledged collateral is sold to pay back the loan and bring the Loan-to-Value ratio back to an acceptable level.
Is Aave safe to use?
As of my last update in September 2021, Aave is considered secure and reputable in the DeFi space, having undergone multiple external audits and implementing various safety measures. However, like all DeFi platforms, there are inherent risks, including potential smart contract bugs, market risks, and human error. Always do your own research and consider consulting a financial advisor before engaging in DeFi transactions.
What is Aave’s Price Prediction for 2025?
Aave in 2025 looks bullish. According to our analysis, the minimum and maximum share price predictions for Aave in 2025 are $68.06 and $407.63 respectively.
What is Aave’s Price Prediction for 2030?
Aave price prediction for 2030 suggests Aave could be trading in between $208.32 and $520.79.
Can Aave reach 500 USD?
According to our analysis, Aave is expected to reach 500 USD in July 2030.
Which is the best alternative to the Aave Protocol?
Aave is the best defi protocol to date, but if there is any protocol that is a close competitor, it has to be Compound Protocol.
Aave Onchain Analysis: January 2024
As of January 26, 2024, Aave exhibits a substantial on-chain presence in the DeFi sector, commanding a total value locked (TVL) of $6,694,788,943. The market cap is reported at $1,301,784,379, of which 18.12% of tokens are staked in the protocol, emphasizing the level of trust and engagement users have with Aave.
The borrowed amount in the system currently sits at $3.494 billion, demonstrating the protocol’s essential role in facilitating crypto-backed loans. In terms of revenue, the annualized figures indicate that Aave is bringing in $255.19m million in fees and $74.75m million in revenue.
As of January 26th, 2024, Aave’s technical analysis for the short term may suggest a bullish nature and AAVE could be seen to trade somewhere between $100 and $80.
In the long term expected to reach 139 USD by December 2024 and 200 USD by August 2025.
Conclusion: Should you invest in the Aave Protocol in 2024?
Investing in Aave in 2024 presents opportunities but comes with considerations. Aave, a reputable DeFi protocol, has introduced Aave V3, showcasing improved features and decentralized governance. Price predictions for 2024 vary, indicating potential gains or losses. Aave’s on-chain analysis reveals a strong position in DeFi.
While Aave has proven reliability, the crypto market’s inherent volatility and potential risks should be acknowledged. Thorough research, staying informed, and diversification are crucial. Investors should weigh their risk tolerance and goals. Consulting financial advisors and monitoring market conditions are advised.
Last updated: 18th February 2024.
