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 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 to users. According to records, AAVE’s early trading price in 2020 was approximately $42.55. Notably, through the Aave Improvement Proposal (AIP1), on October 3, 2020, the Aave platform’s token LEND was converted to AAVE at a ratio of 100:1.

Below are the price changes of AAVE during the early 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 during the early bull market in 2020 and sold at the end of 2021 could have realized a potential profit of $2,333.50.

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

During this period, AAVE’s price experienced a significant decline followed by a gradual recovery. The market entered a bear phase in 2022, with signs of rebound beginning in 2023.

Potential returns for investors purchasing 10 AAVE at specific stages are as follows:

• 2022: -$5,894.00
• 2023: $9,126.00

2022

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

2023

• Opening Price: $59.21
• Closing Price: $108.76
• Highest Price: $108.76
• Lowest Price: $50.95
• Annual Return: 83.69%

Recent Market Cycle: Should I Buy AAVE Now? (2024 to 2025 so far)

In the past two years, AAVE has experienced a strong upward trend again, with significant gains in 2024, but a noticeable correction so far in 2025.

2024

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

2025 (so far)

• Opening Price: $287.85
• Closing Price: $150.47
• Highest Price: $348.79
• Lowest Price: $129.07
• Annual Return: -47.73%

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

• 2024: $5,565.00
• 2025 (so far): -$13,738.00

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

By analyzing AAVE’s historical prices and potential returns, we see that AAVE has undergone multiple distinct cycle fluctuations—from the strong rally in 2020-2021, deep correction in 2022, rebound in 2023-2024, to the pullback phase in 2025 so far. In the long term, as a leading protocol in decentralized lending, AAVE shows strong growth potential, but market volatility is significant. When evaluating whether to allocate to AAVE, investors should carefully consider the current market cycle stage, risk tolerance, and long-term investment plans.