Market

Coin Bureau believes this undervalued defi token could grow 5x this year

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

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Dogecoin Price Gets $5 Prediction, Shiba Inu To Rally 1,100%, And ETFSwap (ETFS) To Jump 135x

Here are the latest predictions for Dogecoin, Shiba Inu, and ETFswap.

18 mins ago

AVAX Hits $1B in DeFi, Cardano Expected to Surge—BlockDAG Leads with $110M Presale & 100% Bonus!

Discover BlockDAG's 100% bonus and $110M presale surge that’s sparking interest among crypto enthusiasts. Also,…

18 mins ago

Crypto Institutional Investors Move To ETFSwap (ETFS) Amid $500 Million Liquidity Injection Expectations

Discover why crypto investors are moving to ETFSwap (ETFS) as $500 million liquidity injection is…

3 hours ago

Buyers Rush to Maximise Gains with BlockDAG’s 100% Bonus Offer; Plus, ETH Holds Strong as Solana Challenges Rivals

Learn about BlockDAG's $110M presale achievement and the whopping 100% bonus offer, alongside Ethereum's growth…

5 hours ago

Thai Police Corruption Case Involving Officers and Extortion

Thai police corruption exposed as officers extort millions in USDT from a Chinese man under…

8 hours ago

SafePal Telegram Wallet Launches with Swiss Bank Accounts and CeDeFi

SafePal Telegram Wallet allows 950 million users to create compliant crypto-friendly Swiss bank accounts, integrating…

9 hours ago

This website uses cookies.