AAVE Crypto Guide: History, Uses, Price & Market Insights

Aave (AAVE) is a decentralized financial system designed to facilitate easier cryptocurrency lending and borrowing.  After being introduced in November 2017, the company was renamed ETHLend in September 2018 to Aave, which translates to "ghost" in Finnish.  On the network, AAVE tokens serve two primary functions: they operate as a governance token, enabling owners to participate in the protocol's future development, and offer holders reduced costs. To develop a loan application on the Ethereum blockchain, serial entrepreneur Stani Kulechov, with a background in computing and law, established the protocol.

History of Aave

Stani Kulechov launched Aave in November 2017 under the name ETHLend.  Aave was the new name for the platform once it was rebranded in September 2018.  In November 2017, one billion AAVE tokens were sold as part of an initial coin offering that raised $16.2 million.  The 1.3 billion AAVE tokens in circulation were exchanged for the newly created AAVE cryptocurrency at a 1:100 ratio during a token swap carried out by Aave in July 2020.  Ethereum is the foundation of Aave's open-source protocol; it is a blockchain that switched from Proof-of-Work to Proof-of-Stake. 

How Aave Work?

Aave allows users to lend and borrow approximately 20 different cryptocurrencies.  When digital assets are deposited into properly designed liquidity pools, lenders receive yields.  In contrast, with this liquidity, borrowers can obtain a quick loan by using their cryptocurrency as collateral.  Uncollateralized loan alternatives known as "flash loans," which must be repaid in a single transaction, are one of Aave's distinctive features.  Depending on the market conditions, Aave also offers borrowers the option to choose between fixed and variable interest rates. 

What is Aave Used for?

In exchange for passive income based on market borrowing demand, depositors may provide liquidity to the Aave protocol using their AAVE tokens or other cryptocurrencies.  Lenders pay interest to borrowers.  Pools may differ in their annual percentage yield (APY).  A total of 0.09% of the volume of flash loans goes to depositors. 

Borrowing can help capitalize on potential investment opportunities, leverage profits, and pay for unforeseen needs.  In exchange, borrowers only need to pay a small interest rate to lenders. 

Developers can launch their products using Aave's vast liquidity pools, particularly by leveraging features like yield farming with borrowed capital.  DeFi Swap is now offering Aave.  When staking CRO, users can increase their yield by up to 20 times, swap AAVE, and earn fees by providing liquidity to AAVE. 

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Recent Trends of Aave

AAVE prices are currently at ₹23,874.60.  The price is currently 13% lower than ₹27,162.02, which was recorded a week ago, and it is 3% lower than Aave's value of ₹24,618.77 from 24 hours ago.  Aave hit its highest point ever on May 18, 2021, at ₹59,413.03.  Compared to its current pricing, this is a 60% change. 

There are now 15,233,073 Aave in circulation.  Its entire supply is 16,000,000, which is 95% of its maximum capacity of 16,000,000 AAVE.  Multiplying the current price of Aave (₹23,845.26) by the total supply (16,000,000 AAVE) yields the current market capitalization of ₹363.67B.  ₹381.98B is Aave's fully diluted valuation.  The value of Aave, diluted, is ₹ 381.98 billion. 

Currently, Aave is among the top 50 most traded cryptocurrencies on Coinbase.  With a current 0% market share, Aave accounts for a portion of the entire cryptocurrency market capitalization.  Over the last 24 hours, there has been ₹34.798B in trade volume.  In contrast, the trade volume for the previous seven days has been ₹225.358B, or an average of ₹32.194B, rising by ₹2.604B for the last twenty-four hours.  With an average of ₹36.738 billion over the past 30 days, the trade volume stands at ₹1.102 trillion, representing a decline of ₹1.94 billion over the previous 24 hours. 

Conclusion

Founded by Stani Kulechov in November 2017, Aave was formerly known as ETHLend. The company has received $16.2 million through an initial coin offering (ICO). In September 2018, ETHLend changed its name to Aave. One of Aave's efforts to become self-governing was the October 2020 launch of its native token, Aave (AAVE). A 1:100 token migration from the previous token is required after the token's debut. Currently, Aave has partnered, integrated, and worked with 30 businesses, including Synthetix, Curve, and 1inch.