AnalysisCryptocurrency news

This Ethereum-Based Coin May Increase In The Coming Months

This Ethereum-Based Coin May Increase In The Coming Months

Like other crypto assets, Aave (LEND) has had a strong correction last week. Crypto currency unit, Bitcoin (BTC) and Ethereum ‘s (ETH) came under pressure due to the decline. LEND was also affected by the short-term collapse in DeFi caused by SushiSwap founder Chef Nomi.

Analysts are optimistic about the cryptocurrency, Aave’s native token, for a variety of fundamental and technical reasons.

LEND can be folded in two

A fractal analysis first noticed by a leading cryptocurrency trader suggests that the LEND will increase by over 100% in the coming months.

The fractal suggests that the LEND’s macro price action has looked similar to the price action of gold since the gold standard was lifted. The comparison shows that the LEND is on the verge of a parabolic growth trend that is consolidated after the initial uptrend.

This ethereum-based coin may rise in the next months
This ethereum-based coin may rise in the next months

Optimists About Potential

The top venture capitalists in the industry are optimistic about LEND’s potential in the ever-changing DeFi space. DTC Capital’s Spencer Noon argued that Aave managed to gain over $ 1 billion in value locked in its contracts without liquidity mining programs as a positive sign for the protocol’s product-market fit:

“One of the best signals of PMF at #DeFi is whether a project will be successful without extra incentives (liquidity mining). @AaveAave does not yet have the LM, still one of the biggest beneficiaries of the new yield farming activity. Its fundamentals are very strong, with $ 1.26 Billion TVL and a market value of only $ 759M. ”

This was repeated by Kyle Samani, managing partner of Multicoin Capital. If Aave’s product-market fit had to choose a DeFi asset in Ethereum for two years

He stated that it will affect his choices in a positive way:

“If I had to have a single Ethereum-based DeFi asset for 2 years, it would be $ AAVE. The best combination ever: reasonable valuation with product / market fit, distribution, community, speed of innovation and pros. “

It is currently unclear how these long-term trends will affect short-term price movements. Aave (LEND) was trading at $ 0.640489 at the time of writing.

What is Aave (LEND) ?

Aave defines itself as a decentralized, open source, and unsupervised money market protocol. While depositors earn interest by providing liquidity to their lending pools, borrowers obtain over-secured loans from these liquidity pools. Deposits are specified as aTokens that accumulate real time interest. “Aave” means “ghost” in Finnish. Ghost represents Aave’s focus on building a transparent and open infrastructure for decentralized finance.

Aave plans to offer liquidity mining and staking rewards for those who lock down LEND tokens. Staked tokens act as a last resort collateral in the event of a shortage.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton he is the editor-in-chief of the news portal. Blockchain is love.

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