Aave is popular in the world of cryptocurrencies as one of the best platforms to lend or borrow your crypto asset. One can also earn interest on them, without any interference from any middlemen. The platform makes the lending and borrowing process more secure with its smart contracts, hence nullifying the necessity of trusting a particular institution or person to manage the funds. Rather only the code in the smart contract is trusted on the whole.
Did You Know: Aave is considered the World Bank in the world of Cryptocurrency as it offers high yield savings account for their cryptocurrency and stablecoin
The AAVE blockchain design offers additional features like instant loans, other forms of issuing debit and credit. The native token AAVE plays a pivotal role in managing the Aave software which allows the users to vote on the upgrades of the platform. The AAVE price amid the 2021 bull run reached highs above $500. Despite the huge downfall, the asset is primed to regain its lost positions very soon.
Fundamental Analysis of Aave(AAVE)
Aave, a Switzerland-based company was founded by Stani Kulechov in 2017, originally named ETHLend. The platform raised nearly $16.2 million in an ICO in 2017 sold 1 billion AAVE, termed as LEND then. The remaining 300 million units of AAVE were held for the Aave team. Running on Ethereum blockchain Aave is managed by a distributed network of computers through smart contracts.
The Aave platform, at its core, enables the formation of a lending pool that allows the users to lend or borrow various cryptocurrencies. The user deposits the assets they want to lend which are later sent to a pool from where the borrowers take out a loan. To make this process much easier, Aave has rolled out 2 different types of tokens:-
- Tokens issued to the lenders to collect interest on deposits
- AAVE token which is the native token of the platform
The AAVE token holders get additional facilities like borrowers do not get charged a fee if they take out loans while the borrowers who keep AAVE as collateral get a discount on the fees with a raised upper limit of the loan.
On the other hand, Aave allows ‘Flash Loans’ which can be instantly issued and settled, which requires no collateral.
Will Aave(AAVE) Price Hit $500 in 2021?
The AAVE coin price initiated the yearly trade on a huge bullish note and rallied to hit its highs around $580. Further it yet again surged after undergoing slight pullback and consolidation to hit the highs around $668. Soon after hitting highs, the asset initiated its sideway trend after forming multiple lower lows and highs.
Yet recently, the AAVE crypto price received an immense boost in the past weekend which uplifted the price from the sideways trend. Despite the asset revisiting the same levels due to a pullback, it is buckling up hard to regain the lost positions soon.
The AAVE token is priced at $182 at the press time and with the current pace, the asset may close the yearly trade around $220 to $250. Moreover, an accelerated rally may uplift the price close to $300. Yet the $500 target may be very much distinct considering the present trend, however, Q1 of 2022 is expected to be pretty much bullish.
Factor Affecting Aave(AAVE) Price Today
As the Aave platform is known for being a popular lending and borrowing platform, many other platforms are entering the space and building their products. Moreover, Aave recently rolled out their boosted protocols for increased yields, greater capital efficiency and deeper liquidity. These are said to be more popular than the traditional liquidity protocols for both the traders and liquidity providers.
Coming to the technicals, a huge bullish trend is yet to initiate at the earliest as the RSI bounced back from the lower levels recently. On the other hand, the MACD is showcasing a building buying pressure and hence a notable uptrend could be fast approaching. Yet certain levels need to be attained that could validate a bullish close at the end of 2021.
Where to buy Aave(AAVE)
The AAVE token in today’s day has achieved huge attention and popularity in the crypto space. And hence quickly got listed on all the top cryptocurrency exchanges. Yet if you are interested in buying some AAVE tokens in India, CoinDCX is the best-suited platform.
CoinDCX is India’s most trusted platform that offers a wide variety of crypto assets at affordable rates. The CoinDCX app provides a unique user experience with hassle-free trades. So download the app on your smartphone and register to enter the world of trade with ease.
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