Aave (LEND) Crypto Coin Price Prediction 2020 & Beyond

Looking for AAVE crypto coin price prediction of 2020 and beyond? Keep reading!

Before we get into our Aave coin price prediction of 2020 and beyond, it’s best you know some background about the Aave cryptocurrency project. If you can answer “What is Aave crypto coin?” already — skip the first part of this article.

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What is Aave (LEND) Crypto Coin?

Aave Protocol with their native token $LEND is a leading company within the decentralized finance (DeFi) sphere. The Company allows its users access to its open-source and non-custodial protocol to create money markets, joining a growing list of projects like Compound to bring decentralized options to the masses. We look at who is Aave ($LEND), its uses and how it differs from other projects such as Compound Finance.

Named after the Finnish word for “ghost”, London-based company Aave was set up in September 2018 after a successful initial coin offering (ICO) the previous year for its ETHLend token which raised USD$16.2 million. The executive team under ETHLend migrated to Aave upon its establishment with ETHLend becoming a subsidiary of Aave. In January 2020, ETHLend announced it was no longer in operation and its website would only remain active for current users to close down their existing loans.

Aave’s aim is to fill in the gaps left by centralised fintech industry giants like PayPal, Skrill and Coinbase. Their main product is Aave Protocol, an open source and non-custodial protocol for creating money markets on the Ethereum blockchain.

Who are behind Aave coin?

Aave has a wealth of talent and experience within its team. Stani Kulechov (CEO) and Jordan Lazaro Gustave (COO) have retained and migrated their roles from ETHLend, bringing their wealth of knowledge to Aave. Their diverse 18 man team bring together a wealth of experience in the startup scene.

How to lend your tokens (deposit) and earn interest?

You can visit the Aave app by visiting this link. Make sure that you connect of the supported wallets and you choose the right market.

Deposits on Aave can be accessed by visiting the Deposit section on its website. This provides you with a list of supported cryptocurrencies from which you choose your preferred coin and the amount to deposit. Behind every currency you can see an estimation of the (yearly) interest.

The interests are not fixed because they depend on prevailing market conditions. Interest paid to lenders is based on the borrowing rate and the utilization rate. Note that depositors earn a higher yield when the utilization rate is high. Also, depositors access a share of the flash loans’ fees at the rate of 0.063 percent of the flash loan volume (more on flash loans later).

Although deposits don’t attract a cap on the deposited amount, depositing meager amounts may not be logical because the transaction cost may exceed the rewards.

Aave has an interest-based token, aToken, focused on depositors. aToken has a ratio of 1:1 to the deposited token.

How to borrow crypto using Aave?

To borrow, visit Aave and head over to the Borrow section and choose the crypto and select the amount. Note that you need to deposit an asset that will act as the collateral. The collateral determines the amount you’re eligible to borrow. Apart from the collateral provided, the maximum amount can also be influenced by the available liquidity of the asset you want to borrow. Choose between variable or stable rate to finish the process.

The Aave steady rate is a short-term fixed rate with the option to re-align in the future depending on market changes. Aave’s variable rate, on the other hand, is calculated from the demand and supply rate on the protocol.

Loan repayment is made using the ‘repay’ option on the borrowing part of the Aave dashboard.

Which cryptocurrency tokens are linked to Aave?

There are 19 tokens available on Aave. These include DAI, USD Coin (USDC), TrueUSD (TUSD), USDT Coin (USDT), sUSD, Binance USD (BUSD), Ethereum (ETH), Basic Attention Token (BAT), Kyber Network (KNC), ChainLink (LINK), Decentraland (MANA), Maker (MKR), Augur (REP), SNK, Enjin Coin (ENJ), REN, WBTC Coin (WBTC), Yearn.finance (YFI) and Ox Coin (ZRX).

Please note: Each asset has a different collateral requirement. This is because of the differences in price volatility. Stablecoins naturally give loan-to-value ratios, due to their price stability. A full breakdown of Aave’s grading process can be found in their Risk Framework.

Alongside these tokens, there is also a native token that Aave uses and which is called Lend. An explanation and analysis of the token can be found below.

What is the Aave (LEND) Token?

Often referred too as ETHLend, the LEND cryptocurrency token has rolled over to become the native token of Aave following the winding-up of operations by ETHLend in January this year. Although it has kept the name, the new Aave version of Lend is largely different from the previous one.

Built based on the ERC-20 standard, $LEND tokens can be used for fee reductions. The tokens are burnt from the fees collected from the Aave Protocol, with around 80% of platform fees used. This appears to suggest that Lend tokens will be worth more over time. LEND owners can also claim on protocol fees in exchange for acting as the first line of defense in the case of liquidity events by malicious borrowers.

In addition, $LEND tokens can be used for voting on Aave Improvement Proposals (AIPs). What’s more, LEND holders can vote with their LEND deposited on the Aave platform, even if it is currently being used as collateral. Currently, this feature is pre-launched on the Ropsten test network before it is launched on the Ethereum mainnet. This is so the Aave community can vote on proposals without incurring huge gas costs, try out the module and provide feedback to the Aave team before it is formally launched. It is also worth noting that the outcomes of all votes on the testnet are not considered as valid for the long term.

Aave (LEND) Coin Price Predictions?

• Aave breakdown from the all-time high at $0.9 continues amid a search for formidable support.
• Short-term support is envisaged at $0.4, but losses to $0.2 are not out of the picture yet.

Aave (LEND) Coin Price Analysis

end Coin recently crossed its 2020’s best price and as most of top cryptocurrency from top 100 list still struggling to get its February 2020 figure, as Lend was reached to $0.036 USD in February, as again it dropped to $0.015 USD and since then it started growing with steady percentage and comparing with today price i.e. $0.041 USD, then it almost hiked by 173% and expected to show more growth in upcoming month, because after lend Coin is work on Ethereum Blockchain which is currently under upgradation with beacon chain and sharding they will going to bring better version of Ethereum who will having PoS. so, this might be possible reason behind sudden growth of Lend, as current daily market cap transaction is worth nearly average at 3.5 million USD. So, we could say Chainlink oracle after partnering with Google cloud making good impact for their partner also.

$0.01 can be possible in the same year, in above prediction we have set per month average price, so If you invested with current average price of $0.40 USD, then can earn upto 121% on your investment, as Aave also launches Rate switching where network suggest to get maximum interest with creating switch between stable and variable rates. As Aave was listed in 2017 and then immediately move upward and sets all-time highest record with $0.44 USD, but during cryptocurrency crash Aave is almost became dead where graph showing no fluctuation and almost straight line in price graph, but new year with addition of new project bringing some momentum into this project and more likely they will consider user voting and make further updating in network.

Aave.com is itself trading platform to borrow and deposit in almost 16 asset, where current total market size is $52 million USD, in which you have provided total liquidity, total borrowed amount, percentage of user deposit and borrow with record of variable and stable data, in which Dai and USD coin having is on top of the list. So, if they successful for bringing investor into market and somehow able to cross $1 billion worth in future, then they can enter into top 50 list. As Token is also available on Binance, Alterdice, Bilaxy, ExtStock, Uniswap, Gate.io and more other trading platform.

After launch of Aave they also working with Enigma for to solving blockchain problem to create more scalable and they previously know as ETHLEND and also, they have working to bringing data and computational privacy to decentralized lending.

Aave (LEND) Price Prediction — Long Term

If you are looking for virtual currencies with good return, LEND can be a profitable investment option. Aave price equal to 0.534 USD at 2020–11–17. If you buy Aave for 100 dollars today, you will get a total of 138.507 LEND. Based on our forecasts, a long-term increase is expected, the price prognosis for 2025–10–18 is 6.471 US Dollars. With a 5-year investment, the revenue is expected to be around +1111.76%. Your current $100 investment may be up to $1211.76 in 2025.