Without a doubt AI, BRC-20 and Web3 have emerged out as the favorites to lead the bull run this time. However, the fundamental niche of layer 1 blockchains consisting DeFi protocols will never become outdated. Owing to their huge potential and immense popularity, DeFi protocols will still be one among the top trends in 2024 and 2025.
Aave, a DeFi blue chip, has been one of the most competitive and secure open sourced liquidity protocol for DeFi. Its ability to bounce back and proven track record makes it one of the best money-markets in DeFi.
After the rollercoaster ride in 2021 bull run, Aave, like others, have hit to the bottom and slowly been consolidating over the last 2 years. With a much limited supply and better prospects, Aave is one of the protocols that present the most bullish scenario where it can 100x and reach $10000. Take a look.
A Brief History
Aave was founded in 2017 by Stani Kulechov under the name 'EthLend'. Initially it was set up as a decentralized lending and borrowing platform without intermediaries. The 'EthLend' later culminated into Aave protocol. The year 2017 and 2018 had been the year for initial developments and raising funds through an ICO. It was in 2019 when Ethlend rebranded into Aave with a vision to transparent DeFi ecosystem. After that, Aave never looked back and has been continuously evolving while reshaping the landscape of Decentralized Finance with groundbreaking innovations.
Why is Aave Popular?
Aave definitely enjoys the first-mover advantage, but that’s not all. There are many other factors that determine its immense popularity. Let's take a look
- Emphasis on security.
- Audits by reputable security firms, such as OpenZeppelin, PeckShield, and Quantstamp.
- An open source DeFi Protocol
- Innovative features, such as flash loans and the E-mode. While flash loans, users can borrow funds without providing any collateral, the E-mode allows borrowers to maximize their borrowing power.
- Seamless integration with other DeFi protocols
- Ability to isolate user's assets from others in the pool
- Gas optimization for lowering gas fees
Tokens in Aave's Ecosystem
There are two tokens in Aave's ecosystem. One is AAVE and the other is AAVE GHOST or GHO.
While AAVE serves as the main token for participation in Aave's ecosystem, GHO can be minted by users against any asset which is collateralized on the platform. GHO is pegged 1:1 to US dollar and it provides safety against volatility to the users.
Can AAVE Reach $10000?
As we are closing in to the next bull market, AAVE is one of those cryptos that have a very high chance of going to the moon. One like many others, their supply is much limited and secondly they are still nascent yet quite popular.
In case of AAVE, the supply is even lower to that of Bitcoin's supply. The total supply is 16 Million tokens and the circulating supply is 14.7 M which is close to its total supply.
Another reason that forms a bullish case for AAVE is its V3’s TVL on Ethereum surpasses $6 billion, which indicates users faith and likeness for the project.
With almost everything suggesting a bright future for Aave, it will definitely reach $1000 in the next bull run. Considering it's just a 10x to 12x from current price. My personal take is that AAVE would most probably demonstrate a 50x to 100x rally in 2025.
At last, As I always say, I ain't a financial advisor nor I am qualified to be, so kindly Do your own research.
Disclaimer: Don't take DYOR too seriously, AAVE has potential of being the foundation pillar for DeFi, and is one of the safest bets in Cryptocurrency.
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