Aave vs Polygon: Which One is Better AAVE or POL?

In the ever-evolving landscape of blockchain and crypto, two notable crypto projects have garnered attention for their unique contributions—Aave and Polygon. Aave, a decentralized finance (DeFi) protocol on Ethereum, and Polygon, a layer 2 scaling solution for Ethereum, play distinct roles in shaping the future of blockchain applications. Let’s delve into their key features and differences.

What is Aave?

Aave stands as a beacon in the decentralized finance space, offering users a platform for lending and borrowing assets on the Ethereum blockchain. At its core, Aave empowers individuals to earn interest by lending their crypto or access liquidity by borrowing against their collateral. The platform is a testament to the growing ecosystem of decentralized financial services on Ethereum.

Key Features of AAVE

1. Lending and Borrowing: Aave’s primary function revolves around lending and borrowing. Users can earn interest by providing liquidity to the platform or leverage their assets through collateralized borrowing.
2. Native Token – AAVE: AAVE, the native token of the Aave ecosystem, plays a crucial role in governance and staking. Holders of AAVE have a say in the protocol’s decisions and can stake their tokens to participate in securing the network.
3. Decentralized Finance Hub: Aave serves as a cornerstone of decentralized finance, offering a range of financial services without relying on traditional intermediaries. The platform is a testament to the innovation happening within the Ethereum ecosystem.

Additional Read: AAVE vs Compound

Latest Aave News:

• Aave’s V3 finally went live on Gnosischain this week, making a significant mark in its roadmap.

Aave V3 is live on @gnosischain. Explore at https://t.co/gzkAogksEq. pic.twitter.com/LlDVRCx1pA

— Aave (@aave) November 7, 2023

Aave vs Polygon: A Comparative Analysis

What is Polygon (POL)?

The Polygon network, previously known as the ‘Internet of Blockchain,’ has expanded into 15 different crypto. Its roots can be traced back to 2017, when it operated under the name MATIC. Established in October of that year by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun—three Indians—the Polygon network arose in response to concerns about Ethereum’s limited scalability. Recognizing the potential challenges this posed, the founders sought to address scalability issues and broaden Ethereum’s capabilities.

Earlier this year, the Polygon ecosystem announced a significant shift through the introduction of the POL token. The POL token (Polygon Ecosystem Token) is designed for a gradual four-year transition to replace the existing POL token, playing a crucial role in Polygon 2.0.

In this evolutionary process, Polygon transforms into a Polygon zkEVM validium, featuring a network of interoperable blockchains tailored for specific applications. POL brings forth enhanced utility, including restaking, allowing validators to secure additional chains within the Polygon supernet by restaking their POL tokens and earning extra rewards.

Key Features of Polygon:

• In line with the Polygon 2.0 specifications, Polygon is undergoing a transformation of its products to incorporate zero-knowledge technology, evolving into a comprehensive scaling solution for the Ethereum blockchain.
• This transformation involves reconfiguring the Polygon Proof-of-Stake (PoS) chain into a ZK validium Layer 2 network for the Ethereum blockchain. 
• A supernet architecture is also being constructed to fuel a hub of ZK Layer 2 networks, all functioning within a cohesive ecosystem featuring an efficient interoperability design.
• As part of this upgrade, the POL token is set to transition into the POL token. The POL token will offer significantly enhanced utility, mirroring the expanded ecosystem, and will introduce new features such as restaking.

Read On: Ethereum vs Solana vs Polygon

Latest Polygon News:

• Unlocking the future, POL is set to become a next-generation token that can power a vast ecosystem of ZK-based L2 chains.

The POL token upgrade is now live on Ethereum mainnet.

Polygon 2.0, released this summer, is a roadmap for scaling Ethereum to build the Value Layer of the Internet. POL unlocks that future.

POL is a next-generation token that can power a vast ecosystem of ZK-based L2 chains.… pic.twitter.com/gmrsu0ZqLz

— Polygon (Labs) (@0xPolygonLabs) October 25, 2023

• Earlier this week, there has been a surge of transactional activity on the Polygon network. The POL gas fees witnessed an steep rise, reaching as high as $0.10. The catalyst for this spike was the fervent rush to mint a newly introduced token called POLS, inspired by the Ordinals protocol.

What is going on on @0xPolygon POS chain? 6m transactions in last 24 hrs. 170 TPS on average. 1mn+ MATIC burnt by the protocol. The chain worked smoothly, gas fees went crazy though but no reorgs or 0 blocks etc.

I hear there is some game Baby Shark Launching, could that be the…

— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) November 16, 2023

5 Benefits of Polygon 2.0 Token

• Enhanced Ecosystem Security: POL ensures security, resilience, and impartiality across all Polygon chains. Highly decentralized Proof-of-Stake (PoS) validators incentivize participation, strengthening the security of multiple chains simultaneously.
• Unlimited Scalability: POL facilitates exponential expansion, enabling widespread adoption within the Polygon ecosystem. The seamless scalability of the validator pool accommodates thousands of Polygon chains without compromising security.
• Sustained Ecosystem Support: Recognizing the early stages of the Polygon ecosystem, POL provides a sustainable, in-protocol mechanism for ongoing support. This support is crucial for the growth and development of the Polygon ecosystem and the broader industry.
• Frictionless Operation: Designed to eliminate friction, POL does not require users or developers to hold, stake, or consume native tokens. Ensures a seamless user and developer experience without hindrances.
• Community Governance: POL is structured to possess governance rights, aligning with Polygon’s vision of community-driven governance. Enables utilization in governance frameworks, reinforcing the decentralized nature of Polygon.

Key Differences of Aave vs Polygon

Polygon (POL) and Aave (AAVE) Technical Analysis 

Source: TradingView

While AAVE price has seen quite the changes in 2023, in the last 24-hour time frame, at the time of writing, AAVE saw an 8.2% surge in its value. Even though the breakthrough has been significant, and the chart shows a possible rise in the coming week, the POL token is still rising higher since its release and is anticipated to reach the much-desired $1 mark by the end of this year.

With a 31% change in POL’s price, the transition of the MATIC tokens to POL is expected to see some significant changes in the coming years and more so with the roadmap that Polygon Labs has shared in its announcement.

Aave Price Prediction

Source: TradingView

The AAVE price is currently running close to the $90 mark range that it had achieved earlier in November 2023, and at the time of writing, AAVE is at $88.58, with a 5.7% drop in value over the last 24 hours and a market cap of $1,295,347,258. The AAVE price is currently intending to surge in an upward direction, showing the possibility of breaching the $90 mark, and aims to close the year by reaching the $93 mark.

Learn More: AAVE Price Prediction

Polygon Price Prediction

Source: TradingView

The POL price is currently running above $0.84 at the time of writing, with a 10% dip in value over the last 24 hours and a market cap of $49,776,030. As the POL token replaces the MATIC ones in the coming years, the crypto communities are anticipating a bull phase, where POL touches the $1 mark by the end of 2023.

If the token continues to carry on as it has been in the past few days, the POL price may trade above $1 by the first week of December and end 2023, attempting to reach $1.2.

Note: The price prediction has been done basis the MATIC token, but it stays true for POL as the new token is set to phase out the MATIC tokens in the coming years.

Read More: Polygon Price Prediction

Should You Buy POL or AAVE?

Both the tokens are running on the ETH blockchain and are aiming for faster transactions and functionalities. With Polygon’s announcement for the POL token and the roadmap that it has laid for itself, the Layer 2 blockchains have got new competition. While POL is still aiming to reach the $1 mark, AAVE has been trying to reach the $95 mark, and the community has seen the surge that the AAVE tokens are garnering.

while AAVE gives the opportunity to its users to lend crypto on its platform, POL has zkEVM rollups and other offerings to get a whole ecosystem together.

With the unique proposition that both these tokens bring in, it is imperative for them to be aligned to your investing strategy after you have done a thorough research on both the tokens.

How to Buy AAVE & POL

Investing in Bitcoin AAVE or POL is extremely simple, fast, and secure with the CoinDCX App. All you need to do is register on the platform. To register, follow the below-mentioned steps:

• Download a Bitcoin and Crypto App India
• Register by entering your details.
• Complete KYC and verify your mobile and email.
• Once your profile is validated, add funds to your wallet
•  Buy AAVE or POL.