Blog Crypto Aave Coin Review: Is it Just a Flash in the Pan?

Aave Coin Review: Is it Just a Flash in the Pan?

date February 18, 2022 time 5 min read 952 views

The excitement about DeFi has cooled somewhat since the hot days of summer 2020, when prices were soaring to record highs, but does the Aave platform have enough to separate it from a crowded field? As with nearly every other crypto, aave coin has endured turbulent times recently. However, it could represent a good investment today. 

This blog will take a deep look at the Aave protocol, its unique flash loans, and explain why some crypto investors rate the coin so highly. 

Aave coin price history

Aave coin’s price has been on somewhat of a rollercoaster since it was introduced to the market in 2020. Things started off fairly straightforward and relatively uneventful, as Aave’s crypto’s price hovered between $30-50 for most of 2020. 

Aave's crypto price shot up in early 2021, reaching a peak in May of that year. It has been on a steady descent since.
Aave’s crypto price shot up in early 2021, reaching a peak in May of that year. It has been on a steady descent since. (Source: CoinMarketCap)

However, it was at the start of 2021 that things really took off, as we saw an increase of roughly ten-fold, with Aave hitting $529.90 by February 12th 2021. Following a few months of fluctuation, its highest peak was reached on May 18th at an impressive $632.27. 

However, the world has gone through many ups and downs since Spring 2021 and crypto has been no exception. Aave coin’s price has gone through many peaks and troughs since that time. At the time of writing, the aave crypto price was at $170.93. 

If you’re interested in taking a look at aave coin, it’s currently available on just about all the major crypto exchanges. You can find it paired with a variety of cryptocurrencies, such as bitcoin (BTC), TUSD or BNB and even fiat currencies like AUD, EUR or USD. 

How aave coin is used 

Aave coin is one of the native tokens of the Aave protocol and platform. The Aave platform is a popular lending arena for those looking to borrow or lend crypto to either earn or pay interest.

Aave takes its name from the Finnish word for ‘ghost’, effectively encapsulating the anonymous nature of the platform. Users stake crypto as part of a pool rather than as individuals, so there is no one named lender and all lenders get a piece of the action. 

Aave is a leading DeFi platform, offering solutions for all kinds of crypto users.
Aave is a leading DeFi platform, offering solutions for all kinds of crypto users. (Source: Aave)

Those who choose to invest in aave coin aren’t just getting a crypto token. They’re also getting a vote in any changes made on the platform and investing in the technology that drives it. 

Aave runs on a system of permissionless and trustless smart contracts, ensuring fast and secure transactions. The system serves as the basis for one particularly interesting technology pioneered by the company: Flash Loans. 

Flash loans have been the subject of some debate since they arrived on the scene, as they’re as innovative as they are controversial. Without going into too much detail, they involve a loan that is taken out and paid back all in a matter of seconds, using smart contracts. These are mainly used for arbitrage opportunities, for example, taking advantage of a momentary price difference in assets between two different exchanges. 

For keen-eyed crypto investors, flash loans are one of the fastest ways to make your move and with Aave’s platform and protocol, you can do it safely and anonymously. 

What is DeFi?

To begin to understand the concept of decentralized finance, we need to take a look at what it’s trying to change and replace: centralized finance.

DeFi companies see the traditional financial institutions as bloated, antiquated monoliths driven by greed and corruption. The high fees for transfers or deposits, the woefully inadequate interest rates offered by many banks and the long waiting times for transactions between institutions were three great reasons for things to change. 

DeFi platforms use blockchain to deliver decentralized banking, lending, and other financial services.
DeFi platforms use blockchain to deliver decentralized banking, lending, and other financial services. (Source: Unsplash)

And change they have done. DeFi has opened opportunities for people who didn’t have access to traditional banking services, or ability to safely store money. In countries that are particularly unstable, DeFi is also a great way of securing assets away from a bank that could declare itself bankrupt at any time or avoiding reliance on a currency that could be prone to hyperinflation. 

How DeFi works and Aave’s place in the system

DeFi is designed to make the processes of asset storage and transfer simpler by removing the middlemen like banks. Through the innovative use of blockchain technology, you’re given an unalterable record of your assets. You’re also able transfer your crypto almost instantly to other wallets or even convert it into another token or currency, without charging you excessive fees.

Decentralized finance has also provided many new financial opportunities for people who are either looking how to turn $1,000 into $5,000 in a month, gain interest from their assets or stake them in order to take out loans in a fiat currency. Smart contracts and other automated processes have helped remove the barriers to crypto, by automatically matching transfers and approvals. In essence, borrowers are taking a loan from a pool rather than an individual, leading to greater capital availability and less trying to find the right match. 

So where does aave coin fit into all of this? Aave is an established player in the world of crypto and their pioneering of flash loan technology has had a huge impact on the current DeFi market. Innovative companies that have the ability to genuinely disrupt the game are always of interest and it could well be worth your time to monitor the aave coin price closely and start investing with little money

Buy with MyConstant loans

If you’re interested in getting yourself some aave coin, you can find it on a platform like MyConstant, where you can collateralize your crypto to receive instant crypto loans with low-interest rates. Other benefits include:

  • 24/7 customer service.
  • Rates as low as 6%.
  • Early repayments for lower rates.
  • Instant matching.
  • Store and borrow against over 70+ different cryptocurrencies.

Sounds interesting? Sign up for a free account today and start investing in aave coin.

Futhermore, you can snag some our MCT tokens on MyConstant Airdrop with our promotion runs from February 17th to March 9th, 2022. 10 lucky customers who refer the most will receive 2,000 MCT each. Best of luck to everyone who spins the wheel and earns MCT—you have nothing to lose!

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George Schooling

George Schooling

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