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, analyzing data from bull and bear market phases. It evaluates the potential returns for investors purchasing 10 AAVE tokens and answers 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, the platform implemented an improvement proposal (AIP1), converting the LEND token to AAVE at a 100:1 ratio, marking a significant milestone for the project. Market records show that AAVE’s 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 tokens during the early bull market in 2020 and sold at the end of 2021 could have realized a potential profit of $4,466.50.

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

During this period, AAVE’s price experienced significant declines and recoveries, influenced by the overall adjustment in the cryptocurrency market.

Potential returns for investors purchasing 10 AAVE during bear or consolidation phases are:

• 2022: -$3,761.0
• 2023: $11,259.0

Recent Market Cycle: Should I buy AAVE now? (2024 to 2026 so far)

In the past two years, AAVE has shown another upward trend, with strong growth in 2024, but a correction in 2025. The market is beginning to discuss whether a new bull cycle has started.

2024 Year

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

2025 Year

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

2026 Year (so far)

• Opening Price: $167.74
• Closing Price: $171.80
• Highest Price: $171.80
• Lowest Price: $167.74
• Annual Return: 2.42%

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

• 2024: $7,698.0
• 2025: -$11,605.0
• 2026 so far: $406.0

Conclusion: Bull, Bear, and Investment Timing Analysis

By analyzing AAVE’s historical prices and potential returns, we see that it exhibits high volatility, with significant bull and bear transitions. The strong rise in 2024 was partially offset by a deep correction in 2025, while 2026 currently shows a modest growth trend. When deciding whether to buy AAVE, investors should consider market cycles, risk tolerance, and long-term investment goals comprehensively.