Can the cryptocurrency hit $700?


ONE major cryptocurrency Aave has endured volatility lately – but some are wondering where the price will wind up if it gets out of its slump.

In the past 24 hours Aave has fallen 1% to $313.50, according to CoinMarketCap.

AAVE has endured volatility as of late

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AAVE has endured volatility as of late

Over the past month, the cryptocurrency has only risen 3%.

When it comes to cryptocurrencies in general make sure you are careful because there is extreme volatility in the industry.

This means you could lose a lot of money quickly.

For example, Aave hit an all-time high of $666.86 in May. But then in the following month, it fell below $200. 

Plus, the crypto space can be filled with complexity, so make sure you understand what you’re investing in.

What is Aave?

Established in 2017 by Stani Kulechov, Aave operates as a decentralized finance (DeFi) protocol, which aims to disrupt the finance world to allow users to lend or borrow in peer-to-peer networks, without needing a middleman.

In addition, users can earn interest on all crypto assets. 

Specifically, Aave users can borrow or lend various distinct types of cryptocurrencies including Decentraland (MANA), and Ethereum.

Speaking of Ethereum, Aave runs on its blockchain, and smart contractors can borrow without a collateral.

A collateral operates an asset that the lender takes as security for a loan.

“The ability to borrow instantly with no collateral with smart protocols in place that return the liquidity back to the pool in one transaction is truly game changing in the DeFi space,” DeFi and NFT expert Rio Rocket told The Sun.

Moreover, Aave (AAVE) tokens are used to power the network, which launched in October 2020.

Aave is currently listed as the 48th largest cryptocurrency on CoinMarketCap – with its value exceeding $4.1billion.

Aave price predictions

Given the volatility that Aave has seen lately, predicting where the price will end up in the future might be difficult.

To hit $700, the price Aave would have to more than double from its current level.

Mr Rocket said he is bullish on Aave gaining “over time” because of its token being available on four major exchanges with “high confidence.”

Furthermore, Mr Rocket noted that Aave is in its “boring phase” where investors mainly hold.

“Usually infrastructure projects have a tremendous run-up and then the big profit-takers liquidate in which we see a more stable trading pattern for a while.”

He added that he feels “the price will remain relatively stable until the fundamentals come back into play for another spike in price.”

Also, some price prediction websites have forecasts.

For instance, Wallet Investor sees the price of Aave hitting $524.80 in 12 months’ time and then exploding to $1,354.28 in five years.  

Meanwhile, Coin Price Forecast is a little less bullish than Wallet Investor. 

By the middle of next year, it predicts the price to reach $371.

It isn’t until 2033 when the coin prediction website expects the price will break $1,000.

But both do predict in five years from now that Aave will reach $700 – so it could just be a matter of time.

Also, keep in mind, that price predictions could change if more bullish or bearish trends occur.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, has previously told The Sun: “These are dark pools of lending, with no regulation but huge risk.

“It’s a speculative twilight world, where currencies lent out can soar or fall in value, mirroring chatter on social media forums.”

We’ve done price predictions for BitcoinEthereumDogecoinShiba InudYdXEOSSaitamaLoopringDecentralandEthereum Name Service, and DogeZilla.

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