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

Summary

This article provides a comprehensive review of AAVE’s historical prices and market fluctuations since its inception, combining data from bull and bear market phases to evaluate the potential returns for investors purchasing 10 AAVE tokens. It also addresses the key question, “Should I buy AAVE now?” to help both beginners and long-term investors grasp timing and growth opportunities.

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

Aave is an open-source decentralized lending protocol that offers deposit and borrowing services. On October 3, 2020, Aave converted its platform token LEND to AAVE at a ratio of 100:1 through Improvement Proposal (AIP1). According to market records, its early trading price was approximately $42.55.

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

2020 Year

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

2021 Year

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

An investor who bought 10 AAVE during the early bull market phase in 2020 and sold at the end of 2021 could have realized a potential profit of 353.75%.

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

During this period, AAVE’s price experienced a deep correction followed by a gradual recovery.

The potential returns for investors purchasing 10 AAVE during bear or consolidation phases are as follows:

2022 Year

• Opening Price: $209.41
• Closing Price: $52.12
• Highest Price: $243.01
• Lowest Price: $52.12
• Yearly Return: -75.11%
• Cumulative Return: -469.00%

2023 Year

• Opening Price: $59.21
• Closing Price: $108.76
• Highest Price: $108.76
• Lowest Price: $50.95
• Yearly Return: 83.69%
• Cumulative Return: 1033.00%

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

In recent years, AAVE experienced a strong rally followed by a correction. The market is now discussing whether there are still opportunities for strategic positioning.

2024 Year

• Opening Price: $94.82
• Closing Price: $341.55
• Highest Price: $368.37
• Lowest Price: $78.25
• Year-to-date Return: 260.21%

2025 Year

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

2026 Year to date

• Opening Price: $162.51
• Closing Price: $162.51
• Highest Price: $162.51
• Lowest Price: $162.51
• Year-to-date Return: 0%

The potential returns for an investor buying 10 AAVE during this period are:

• 2024: 676.90%
• 2025: -1253.40%
• 2026 year to date: 0%

Conclusion: Bull Market, Bear Market, and Investment Timing Analysis

By analyzing AAVE’s historical prices and potential returns, we observe that the asset exhibits significant cyclical characteristics. Long-term, starting from $42.55 in 2020, AAVE reached a high of $527.59 in 2021 but then experienced a deep correction. The strong performance in 2024 demonstrates ongoing market recognition of DeFi lending protocols, but the correction in 2025 indicates current market uncertainties. With the current price around $162.51, investors should carefully assess whether this is an appropriate entry point based on their risk tolerance and market outlook.