Aave (AAVE): price, chart and where to buy
📋 Index
Aave AAVE
Ranked 44 by market capAave price history is temporarily unavailable.
Key figures
| Market cap Price multiplied by the number of units in circulation. | 1,821,632,455 € |
|---|---|
| 24h volume What changed hands in a day. Thin volume makes selling back hard. | 195,794,588 € |
| Fully diluted valuation What the project would be worth if every planned unit already existed. | 1,887,700,548 € |
| Circulating | 15,440,012 AAVE |
| Total supply | 16,000,000 AAVE |
| Maximum supply A hard cap is rare: most cryptocurrencies can issue indefinitely. | 16,000,000 AAVE |
| 24h range | 116.46 € – 123.73 € |
| All-time high The percentage shows how far today's price sits from that peak. | 541.28 € (-78.20 %) — 18/05/2021 |
| All-time low | 22.10 € — 05/11/2020 |
Where to buy Aave: the real cost of 500 €
| Exchange | You receive | Gap to market | |
|---|---|---|---|
| LBank best price | 4,247943 AAVE | 0.10 % | See the offer |
| Bybit | 4,244409 AAVE | 0.18 % | See the offer |
| Binance | 4,242985 AAVE | 0.22 % | See the offer |
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How decentralized lending is reshaping finance
Imagine a financial system where your bank is a piece of autonomous code. Aave answers the central question of what is Aave by providing a decentralized ecosystem for lending and borrowing without human intermediaries. This protocol fundamentally changes how users interact with credit and interest. It removes the traditional gatekeepers of the banking world.
From ethlend to a global liquidity protocol
Aave did not start with its current name. It originated as ETHLend in 2017, founded by Stani Kulechov to solve peer-to-peer lending inefficiencies. Why did it evolve? The team realized that matching individual lenders with borrowers was too slow. They shifted toward a liquidity pool model. This innovation allowed for immediate transactions. Efficiency became the core objective.
The transition marked a turning point for the project. By moving to Ethereum, the protocol gained the ability to handle various assets simultaneously. It became a cornerstone of decentralized finance. The vision was clear: create a transparent, open-source environment where anyone can participate.
💡 Tip: Distinguish the decentralized protocol from the AAVE token to better understand the governance mechanism.
Mechanics of automated credit markets
How does the protocol function technically? It relies on smart contracts to manage assets. Users deposit their digital holdings into large liquidity pools. In exchange, they receive interest-bearing tokens. Borrowers can then access these pools by providing collateral. This is a trustless environment. Code governs every single interaction.
Is human intervention required? No. The system uses mathematical formulas to determine interest rates based on supply and demand. If the supply is low, rates rise. If it is high, rates fall. This self-regulating nature ensures the protocol remains functional without a central office.
| Mechanism | Liquidity pools / Smart contracts |
| Max supply | 16,000 |
| Historical peak date | 2021-05-18 |
| Primary use case | Decentralized lending and borrowing |
🚫 Pitfall: Thinking that liquidity pools are immune to market volatility is a mistake often made by beginners.
The role of governance and scarcity
What is the concrete use of the token today? Beyond the lending protocol, AAVE serves as a critical governance tool. Holders have the power to vote on protocol improvements. They decide which assets to add. They influence the risk parameters of the system. It is a democratic financial experiment.
Scarcity is built into the design. The protocol features a maximum supply of 16,000 units. This fixed limit creates a specific economic framework for the ecosystem. The asset also serves as a safety net. In case of a deficit, the protocol can use its reserve to cover losses. This adds a layer of security for the lenders.
⚠️ Remark: The maximum supply is strictly limited to 16,000 units, which defines the scarcity of the asset within its economic model.
Is aave review a positive step for transparency?
An Aave review often highlights the transparency of the blockchain. Every transaction is public. Every rule is written in the code. You do not need to trust a banker. You trust the math. This level of clarity is rare in traditional finance. It attracts those seeking a more open financial future.
What is the purpose of the AAVE token?
The token primarily serves as a governance and security instrument within the protocol. Holders can propose and vote on changes to the system’s rules or asset listings. Additionally, it acts as a backstop in the Safety Module to protect the system against potential liquidity issues.
How does borrowing work on this platform?
Borrowers must provide more value in collateral than the amount they wish to take out. This over-collateralization ensures that the protocol remains solvent even during market fluctuations. If the collateral value drops too low, the system automatically triggers a liquidation to repay the lenders.
Is the protocol considered secure for users?
While no software is entirely without risk, the protocol has undergone numerous security audits by professional firms. Its open-source nature allows the global community to inspect the code for vulnerabilities constantly. Historically, it reached its highest valuation on 2021-05-18, reflecting a period of significant network activity.
