AAVE Historical Price and Return Analysis: Should I Buy AAVE Now?

Abstract

This article provides a comprehensive review of AAVE’s historical price movements and market volatility since its inception, combining data from bull and bear market phases to evaluate the potential returns for investors purchasing 10 AAVE tokens. It addresses the critical question: “Should I buy AAVE now?” to help both novice and long-term investors identify optimal entry points and growth opportunities.

Bull Market Origins and Early Market Cycle: Historical Price Review (2020 to 2021)

AAVE was created through a significant transformation in the DeFi lending landscape. On October 3, 2020 (block height 10978863), the platform implemented improvement proposal AIP1, converting the original LEND token to AAVE at a 100:1 ratio. AAVE is an open-source decentralized lending protocol that provides deposit and lending services to users. The platform algorithmically calculates deposit and loan interest rates based on platform borrowing and deposit volumes, while utilizing Chainlink’s oracle to ensure fair collateral pricing.

According to CoinMarketCap records, AAVE’s early trading price was approximately $42.55.

Below are AAVE’s price changes during the early bull market phase:

2020

• Opening Price: $42.55
• Closing Price: $93.37
• Highest Price: $93.37
• Lowest Price: $30.52
• Annual Return: 119.44%

2021

• Opening Price: $127.14
• Closing Price: $265.30
• Highest Price: $527.59
• Lowest Price: $127.14
• Annual Return: 108.68%

An investor who purchased 10 AAVE tokens during the early bull market in 2020 would have achieved a potential return of $793.50 if sold today.

Bear Market Adjustment and Mid-Term Cycle: Return and Risk Analysis (2022 to 2023)

During this period, AAVE experienced significant price volatility, marked by a severe bear market correction followed by gradual recovery. The market faced headwinds from macroeconomic factors and regulatory uncertainty affecting the broader cryptocurrency sector.

Below are potential returns for investors purchasing 10 AAVE tokens during the bear market and consolidation phases:

• 2022: -$875.10
• 2023: $626.90

2022

• Opening Price: $209.41
• Closing Price: $52.12
• Highest Price: $243.01
• Lowest Price: $52.12
• Annual Return: -75.11%

2023

• Opening Price: $59.21
• Closing Price: $108.76
• Highest Price: $108.76
• Lowest Price: $50.95
• Annual Return: 83.69%

Recent Market Cycle: Should I Buy AAVE Now? (2024 to 2026 to date)

In recent years, AAVE has entered a phase of renewed volatility, with 2024 demonstrating strong bull market characteristics before experiencing a correction in 2025 and 2026. Market participants continue to debate whether the asset has entered a new bull cycle or remains in a prolonged consolidation phase.

2024

• Opening Price: $94.82
• Closing Price: $341.55
• Highest Price: $368.37
• Lowest Price: $78.25
• Annual Return: 260.21%

2025

• Opening Price: $287.85
• Closing Price: $164.14
• Highest Price: $348.79
• Lowest Price: $129.07
• Annual Return: -42.98%

2026 (to date)

• Opening Price: $167.74
• Closing Price: $121.90
• Highest Price: $168.79
• Lowest Price: $112.49
• Annual Return: -27.33%

Potential returns for investors purchasing 10 AAVE tokens during this recent period are as follows:

• 2024: $270.80
• 2025: -$1,659.50
• 2026 (to date): -$458.40

Summary: Bull Markets, Bear Markets, and Investment Timing Analysis

Through analysis of AAVE’s historical prices and potential returns, we observe a pattern of significant cyclical volatility, with exceptional gains in bull phases offset by substantial drawdowns during corrections. The data demonstrates both the high-growth potential and considerable downside risk associated with AAVE investments, providing essential context for evaluating whether the current market environment remains suitable for new positions.