{"id":10256,"date":"2022-07-15T20:42:04","date_gmt":"2022-07-16T01:42:04","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10256"},"modified":"2022-07-15T20:42:05","modified_gmt":"2022-07-16T01:42:05","slug":"this-undervalued-defi-altcoin-is-primed-to-rise-to-astronomical-heights-according-to-coin-bureau-host","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10256","title":{"rendered":"This \u2018Undervalued\u2019 DeFi Altcoin Is Primed To Rise to Astronomical Heights, According to Coin Bureau Host"},"content":{"rendered":"\n

A widely followed crypto analyst says decentralized borrowing and lending protocol Aave is bound to surge once the bear market is over.<\/p>\n\n\n\n

In a new video, pseudonymous Coin Bureau host Guy\u00a0tells<\/a>\u00a0his 2.08 million subscribers that AAVE remains undervalued during the current market downturn.<\/p>\n\n\n\n

\u201cToday, Aave\u2019s ecosystem reserve only holds 1.7. million AAVE, according to Etherscan. On the demand side of this economic equation, Etherscan suggests that the number of  AAVE token holders continues to rise and I suspect this is because the AAVE token sticker price has declined significantly, which has made it more appealing to investors who don\u2019t pay attention to market cap.<\/em><\/p>\n\n\n\n

On that note, I couldn\u2019t help but notice the comments during the last video arguing that Aave was not undervalued because its ticker price was high when AAVE was, and arguably, still is undervalued as its market cap is four times smaller than the total value locked in the Aave protocol. Always remember that it\u2019s the market cap that matters, not the price tag.\u201d<\/em><\/p>\n\n\n\n

Guy says the new Aave stablecoin<\/a>, GHO, will increase demand for the crypto asset.<\/p>\n\n\n\n

\u201cWhat does [matter] is the relative lack of demand drivers for the AAVE token. The AAVE token\u2019s utility is currently limited to governance and staking, which offers an admittedly attractive reward relative to alternatives, albeit with slightly higher risks.<\/em><\/p>\n\n\n\n

The silver lining is that most of Aave\u2019s supply is in circulation, meaning there isn\u2019t much sell pressure left and this seems to be the rationale behind allocating the interest rates from the GHO stablecoin to the Aave treasury. It reduces the sell pressure for the AAVE token and ensures the protocol\u2019s longevity.<\/em><\/p>\n\n\n\n

The introduction of the GHO stablecoin should also increase the demand for AAVE since it will make it possible for Aave stakers to mint GHO at near-zero interest rates. The caveat is that an increase in staked  Aave could dilute the overall staking reward, which could weaken Aave\u2019s second demand driver.\u201d<\/em><\/p>\n\n\n\n

The analyst says several factors contribute to Aave<\/a> shedding over 70% of its value in January, including energy and supply chain disruptions, a rise in interest rates and an increase in circulating supply, resulting in $40 million worth of potential sell pressure.<\/p>\n\n\n\n

Guy says demand drivers will have minimal impact on the price of Aave because of the current downturn, but he expects the situation to change once the bear market is over.<\/p>\n\n\n\n

\u201cThe harsh reality is that Aave\u2019s future improvements to demand won\u2019t do much to change the fact that we\u2019re currently in a crypto bear market, but it will help the Aave token rise to astronomical heights when the next bull market comes around, especially if the GHO stablecoin gains serious adoption.\u201d<\/em><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

A widely followed crypto analyst says decentralized borrowing and lending protocol Aave is bound to surge once the bear market<\/p>\n","protected":false},"author":1,"featured_media":10258,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3423,254,3421],"tags":[3456,3426,3468,888],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10256"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10256"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10256\/revisions"}],"predecessor-version":[{"id":10257,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10256\/revisions\/10257"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/media\/10258"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10256"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}