AAVE is a prominent decentralized finance (DeFi) lending protocol that allows users to lend and borrow a wide variety of cryptocurrencies. Its native token, AAVE, plays a central role in the platform's governance and security. This analysis provides a detailed look at the current AAVE market, its key metrics, historical performance, and essential information for investors and enthusiasts.
Understanding AAVE's Market Position
As of the latest data, AAVE is trading at approximately $268.15. It holds the 28th rank by market capitalization in the global crypto market. The circulating supply of AAVE tokens is 15,047,752.82.
Key market indicators provide insights into its recent activity:
- 24H Volume: The trading volume over the last 24 hours is a critical metric for liquidity.
- 24H Change: The price has experienced a change of -2.81% in the last day.
- 24H High/Low: The price fluctuated within a range, with a volatility of +6.17%.
- BTC Correlation: AAVE shows a correlation of 0.74 with Bitcoin, indicating its price movement is somewhat tied to the broader market leader.
These metrics are vital for assessing the token's short-term momentum and liquidity.
Key AAVE Metrics and Definitions
To fully understand the data, it's important to know what each term represents.
- Circulating Supply: The number of coins that are publicly available and trading in the market.
- Market Capitalization: The total market value of a cryptocurrency's circulating supply. It is calculated by multiplying the current price by the circulating supply.
- 24H Trading Volume: The total value of all trades for the asset across tracked exchanges in the last 24 hours.
- Volume-to-Market Cap Ratio (Turnover Rate): This measures the trading activity relative to the asset's size. A higher ratio often indicates higher liquidity and interest.
- All-Time High (ATH): The highest historical price the asset has ever reached. AAVE's ATH was set on May 18, 2021.
- All-Time Low (ATL): The lowest historical price the asset has ever reached, recorded on November 5, 2020.
Analyzing AAVE's Historical Performance
AAVE has demonstrated significant growth since its inception. The investment return figure of +15673% highlights its potential for long-term investors, though past performance is not indicative of future results. Historical data charts typically show:
- Monthly/Yearly Performance: Tracking price changes over different periods helps identify seasonal trends or long-term cycles.
- Market Cap Ranking History: Observing how its market cap rank has changed over time reveals its competitive standing within the crypto ecosystem.
Reviewing this historical context is crucial for making informed decisions. For a deeper dive into current market dynamics and advanced charting tools, you can explore real-time analysis platforms.
Where to Track AAVE Prices
AAVE is listed on numerous major cryptocurrency exchanges globally. Each exchange provides its own order book, which leads to slight variations in the latest price, 24-hour volume, and quoted trading pairs (often against USDT, BTC, or ETH).
When comparing prices across exchanges, it's important to consider:
- Liquidity: Exchanges with higher volumes typically have tighter bid-ask spreads.
- Trading Pairs: The available pairs can affect how easily you can enter or exit a position.
- Data Accuracy: Prices and volumes are updated in real-time, but the refresh rate can vary by data provider.
Frequently Asked Questions
What is AAVE used for?
The AAVE token is primarily used for governance within the Aave protocol, allowing holders to vote on proposals and upgrades. It also serves as a safety mechanism for the protocol; in the event of a shortfall, tokens can be staked to help cover deficits.
How does AAVE's lending protocol work?
The Aave protocol allows users to deposit cryptocurrencies into liquidity pools to earn interest. Others can then borrow these assets by providing collateral. The interest rates are algorithmically determined based on the supply and demand for each asset.
Is AAVE a good investment?
Like any cryptocurrency, AAVE carries significant investment risk due to its volatility. Its value is tied to the adoption and usage of the Aave protocol. Potential investors should conduct thorough research, understand the DeFi sector, and only invest what they can afford to lose.
What is the difference between AAVE and other DeFi tokens?
AAVE was one of the first and remains one of the largest decentralized lending protocols. Its key differentiators include features like flash loans, rate switching (between stable and variable rates), and a strong focus on security and community governance.
How do I buy AAVE?
AAVE can be purchased on most major cryptocurrency exchanges. You typically need to create an account on an exchange, deposit funds (either fiat currency or another cryptocurrency like BTC or ETH), and then place an order to buy AAVE.
What factors influence the price of AAVE?
The price is influenced by broader crypto market trends, the adoption and total value locked (TVL) in the Aave protocol, new feature announcements, changes in governance proposals, and overall sentiment in the DeFi sector. To stay on top of these moving parts, get the latest market insights.