AAVE Historical Price and Return Analysis: Should I buy AAVE now?

Summary

This article provides a comprehensive review of AAVE’s historical price movements and market fluctuations since its inception. Combining data from bull and bear markets, it evaluates the potential returns for investors who purchase 10 AAVE tokens and addresses the key question, “Should I buy AAVE now?” to help both beginners and long-term investors identify optimal timing and growth opportunities.

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

Aave is an open-source decentralized lending protocol offering deposit and borrowing services. On October 3, 2020, the platform converted its token LEND to AAVE at a 100:1 ratio through an improvement proposal (AIP1). Records show that early trading price of AAVE was approximately $42.55.

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

2020

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

2021

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

An investor who bought 10 AAVE in 2020 and sold at the end of 2021 could have realized a potential profit of $717.50.

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

During this period, AAVE’s price experienced significant declines due to the overall cryptocurrency market correction.

Potential returns for investors who bought 10 AAVE during bear or consolidation phases:

2022

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

2023

• Opening Price: $59.21

• Closing Price: $108.76

• Highest Price: $108.76

• Lowest Price: $50.95

• Yearly Return: 83.69%

• Potential profit for buying 10 AAVE in 2022: -$951.10

• Potential profit for buying 10 AAVE in 2023: $550.90

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

In recent years, AAVE saw a significant surge in 2024, followed by a correction phase from 2025 to 2026.

2024

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

2025

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

2026 (to date)

• Opening Price: $167.74
• Closing Price: $114.30
• Highest Price: $168.79
• Lowest Price: $112.49
• Year-to-date Return: -31.86%

Potential returns for buying 10 AAVE during these years:

• 2024: $194.80
• 2025: -$1,735.50
• 2026 (so far): -$534.40

Conclusion: Bull, Bear, and Investment Timing Analysis

By analyzing AAVE’s historical prices and potential returns, we see that the asset experienced long-term growth from 2020 to 2024 but entered a correction phase starting in 2025. Investors should carefully assess current market risks and their investment goals to determine whether the current stage is suitable for deployment. The key question remains: “Should I buy AAVE now?”