With an emerging era of Defi cryptocurrencies and platforms, the popularity of such concepts is growing steadily. Increasing the number of open-source platforms in the market. They provide transparent terminology that attracts a lot of potential investors from the industry.
Gazing back to the last few years a lot of new Defi platforms are entering the market. While creating a prominent spot in the Defi marketplace, Aave protocol is one of those open-source platforms with many features bundled together. But is it worth making long-term investments? what is the current market condition of the AAVE coin at moment? We've answered everything in this post!
About Aave Coin
Aave is one of the best-decentralized liquidity market protocols. Following the concept of non-custodial lending and borrowing environment. The platform is making significant progress in the field. Getting introduced into the market in November 2017, the Aave platform is built by Stani Kulechov. Providing an open-source marketplace where lenders and borrowers can interact and complete the process much quicker.
The AAVE tokens are the native currency for the platform itself. Playing its role as a backbone of the entire protocol. AAVE coins are burned from time to in order to maintain market stability and prices. Usually, the tokens are utilized for faster transaction fees and taking part in other protocol-based activities. Working as one of the best cryptos that can work with various Defi platforms at a time.
Aave Coin Price
Aave coin is in the market for almost 4 years now. Hence, it is quite obvious that the price is surging as the platform proves its importance in the industry. Starting from as low as $50, the current price of Aave coin is around $295.30. Not to mention the all-time high price is $666.86 during the March price surge event.
The price range of this coin has an upper hand when compared to other tokens that were launched almost in the same year. As the prices kept increasing since the launch of the native token, helping the platform to create a meaningful existence without a doubt. Aave coin prices are fluctuating lately if you go through the price chart. But considering the potential, it won't hurt to assume that AAVE prices can cross a tremendous amount of $1500 in the next five years or 2025.
How Aave Coin Works
The AAVEe coins are similar to those tokens that work on ERC 20 concept. Backed up by the powerful and secure Ethereum blockchain, the AAVE coins are one of the main income sources for the Aave platform. And the sole reason for that is the native tokens are used as transaction fees for completing the landing and borrowing transactions on the platform.
However, the Aave protocol uses the income from transactional fees. For buying a specific amount of tokens in circulation and burn them. The protocol runs on a smart contract-based system that is made to perform specific actions whenever a certain condition is met. Hence, as use of the Aave protocol, you don't need to worry about any mediator or a third party. As the transaction process is completely carried out by the Aave protocol, running on a network of computers.
Use cases of Aave Coin
More than one use case is always preferred while choosing a new cryptocurrency. As you can do different things with the tokens you hold, coins with multiple uses are a must. We can say that the AAVE coin has many different uses in terms of transactions and various activities. So if you decide to buy the tokens, it will allow you to use them in many different ways according to your requirements. Here's a quick rundown of the possible use-cases you can enjoy with AAVE coins.
- You can use them for collateral
- for voting in important decisions within the protocol
- trading in the crypto market for profit
Availability and supply
Considering the fact that cryptocurrency is a highly volatile market, the availability and circulating supply of any crypto token are very important. Especially if you are looking forward to making a long-term investment. Whereas, the AAVE coin has a 24-hour trading volume of $200,831,238 which is rather promising with a total supply of 13,196,868.73 AAVE tokens circulating in the market at the moment.
The market cap of a specific token is a critical factor for deciding whether you should make long-term investments or not. The great thing is that the AAVE coin has a decent market cap of approx $3,898,091,786, by which you can easily imagine how many transactions are completed for this particular currency.
How to buy and invest in Aave Coin
It goes without saying that the best cryptocurrency exchanges are very important whenever buying crypto. While it doesn't matter whether you are buying only a few of them or thousands of them. AAVE tokens are currently gaining more evaluation due to the increasing platform popularity. Therefore, if you wish to buy them for trading or holding, choosing a crypto exchange with goodwill is extremely important.
As mentioned earlier, the platform is getting a lot of attention lately, so getting the native token listed on popular trading platforms is an obvious thing for sure. Here we have collected a few of the best-centralized crypto exchanges that will allow you to buy AAVE tokens and make long-term investments at lower transaction fees.
- Huobi
- Kraken
- Binance
- Coinbase
How to store Aave Coin
Storing your AAVE coins securely is very important. As the Aave platform is completely open-source and decentralized, it is still undergoing necessary changes regarding the security. However, there is a lot of features and improvements that are already completed by the team, so you won't face any issues related to buying and storing the AAVE tokens from any marketplace.
Certainly, there are a lot of wallets digital and hardware, that support ERC 20 based tokens. Thankfully the AAVEcoins are based on ERC 20. So you can use your choice of wallet in order to store your tokens hassle-free. Still, we have mentioned some of the easy-to-use wallets if you don't have any specific wallet in your mind.
- Coinbase wallet
- BitPanda
- Ledger Nano S
- Trezor Wallet
Is Aave Coin a good investment?
The platform is introducing new features and concepts in the Defi non-custodial protocols. Hence, many reputed exchanges and investors from the market are showing interest in the platform as well as its native currency AAVE. Not to mention the AAVE token is currently ranked as the 48th most popular cryptocurrency in the world in terms of market cap.
Perhaps, this question is rather skeptical as the Defi platforms with lending and borrowing pool are still creating a subtle place in the crypto industry. Offering faster and more transparent transactions in comparison to the centralized services that we usually use, Aave is a protocol with a bright future. In conclusion, there's a high possibility the AAVE token process will surge up in the near future.
Future of Aave Coin
The Aave protocol developers are taking every necessary precaution to keep the platform as secure as possible. Whether it's finding new bugs in the protocol or enhancing the liquidity rate for better availability, it is capable. With backup capital to deal with the uncertain shortage of capital in the market, you can rely on the platform for sure.
From a future point of view, investing in AAVE coins may seem a secure investment to many investors. But we recommend going through the recent market changes for making accurate investments. However, we can not neglect the fact that the cryptocurrency industry is taking over the investment possibilities rather quickly. And people are not hesitating to stake their money considering the profit possibilities.
