The host of popular cryptocurrency channel Coin Bureau is investigating what will happen to decentralized borrowing and lending protocol Aave.

Analyst Guy – Moderator of the Coin Bureau channel

In one Video Recently, analyst Guy said that the overall DeFi sector is declining compared to the rest of the crypto market.

“AAVE token is underperforming and has barely doubled since early 2021. Almost every DeFi token has struggled to keep up with the rest of the market since the crash last May.

This appears to be because the hype has turned to the NFT. This was confirmed by AAVE founder and CEO Stani Kulechov during a panel discussion in October.

Essentially, he’s saying that while DeFi is fun and often profitable, it’s too complicated for the average person.

Meanwhile, the NFT offers a comparable level of excitement and growth. They are a concept that almost everyone can understand.”

Last year, the AAVE rallied from under $100 to an all-time high of over $660 on May 18 before falling more than 70% to $184 in late June, a downtrend until a late December rally pushed the AAVE from $180 to 255 brought $.

Guy notes that Aave’s upcoming V3 upgrade will generate more interest in the project.

“The biggest upcoming milestone is the launch of Aave V3, which introduces many new features to the Aave protocol.

The first is the portal feature, which allows lenders and borrowers to transfer any tokens they deposited in Aave V3 on one blockchain to Aave V3 on other blockchains.

The second feature is the high efficiency mode (E-mode), which greatly increases the loan-to-value ratio for certain properties…

The third feature of Aave V3 is isolation mode, which can introduce new tokens into the Aave protocol while minimizing risk to the rest of the protocol.”

Guy also mentioned Aave’s plan to impact the future of social media by releasing a decentralized social media platform where users cannot be censored or removed.

“Aave’s social media platform is built in such a way that your social media profiles as well as any other content you create on the Aave platform can be migrated to any media platform. There are no other decentralized social media on Ethereum , so they can not be censored .

Regarding the exact release date, Aave said that their social media platform is coming soon and the reason for the slow implementation is that the team has been mainly focused on Aave V3 in the last few months…

Stani predicts that decentralized social media will be the next niche after NFT.”

Finally, the analyst shares his price prediction with AAVE.

“With a market cap of just $3 billion, that means AAVE is undervalued by a factor of 5 and its fair valuation could be well over $1,000.”

At the time of writing, AAVE is up 12.44% on the day and is currently trading at $237.1.

Source: Tradingview

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