Aave is one of the pioneering projects in the DeFi sphere, which has attracted significant interest in the last couple of years. AAVE token has done quite well for itself in 2021. What is in this coin’s future? We gathered some Aave news and AAVE coin price predictions, so that you can read this article to find out.
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Table of Contents
Aave Fundamental Analysis
Aave is a decentralized and non-custodial protocol that allows users to borrow and lend over 20 digital assets. Lenders can earn interest by depositing money in a specially created liquidity pool, while the borrowers can use their cryptos as collateral and receive a flash loan of the funds in the liquidity pool. For the lenders, the profit depends on the current market borrowing demand. But users also can use already deposited assets as collateral, moreover, accumulated interest affects the interest rate if the same user wants to borrow crypto. All the funds are allocated to smart contracts.
As an open-source protocol, Aave allows any user to interact with its interface client, API and smart contracts on the Ethereum network. Users also can build any third-party service or application to interact with the protocol and develop their product or service. Deposited or earned assets can be withdrawn from the pool on-demand or exported as a tokenized version of lender position (aTokens).
The project was originally founded in November 2017 and was called ETHLend, but in September 2018 it was rebranded and got a new name Aave, which means “ghost” in Finnish.
Aave token is powering the platform and is also used to govern the project. It was launched in 2020 to make a platform self-governed. The holders vote and decide on the outcome of the Aave improvement proposals. The coin can also be staked within the protocol Safety Module providing security to the depositors and letting the stakers earn fees and rewards.
Aave Live Price Chart
Aave token has been following bullish trends from the beginning of the year. It also showed a significant increase compared to the beginning of 2020 when the Aave price was bouncing between $50 and $80. In February the coin was traded for $580 and it was the highest milestone for the project.
The downtrend came right after the uptrend, but the token didn’t lose too much of its value. The price was jumping around $370 without changing too much. This tendency came along with the general bearish tendencies in the digital assets market.
In mid-April, Aave started to gain value again and reached its all-time high of $641 on May 19 before its price started to decline again. It was going through the correction till the beginning of August and then went up again. At the moment of publishing, Aave’s price is 336.86 USD and most analysts consider its chart changes as positive and expect the asset to increase in value.