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 who purchase 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 Cycle: Historical Price Review (2020 to 2021)

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

Below are the price changes of AAVE during the initial 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 bought 10 AAVE tokens during the early bull market in 2020 and held until the end of 2021 would have realized a potential profit of $756.50.

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

During this period, AAVE’s price experienced a significant decline, dropping 75.11% throughout 2022, followed by a rebound in 2023.

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

• 2022: -$912.10
• 2023: $589.90

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

In the past two years, AAVE has experienced notable volatility. It surged strongly in 2024, with an annual return of 260.21%, then declined in 2025 and 2026.

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 (so far)

• Opening Price: $167.74
• Closing Price: $118.20
• Highest Price: $168.79
• Lowest Price: $112.49
• Year-to-date Return: -29.53%

Potential returns for an investor buying 10 AAVE tokens during these years are:

• 2024: $233.80
• 2025: -$1,696.50
• 2026 (so far): -$495.40

Conclusion: Bull, Bear, and Investment Timing Analysis

By analyzing AAVE’s historical prices and potential returns, we see that the asset has experienced clear cyclical fluctuations—from high gains during the 2020-2021 bull market, through deep corrections in 2022, to a rebound in 2024. Currently, the price is under downward pressure, and investors should carefully evaluate market timing before making decisions.