The host of the popular cryptocurrency channel Coin Bureau is looking at what will happen with the decentralized lending and borrowing protocol Aave.
Analyst Guy – Host of Coin Bureau channel
In one video Recently, analyst Guy says that the overall DeFi sector is going down compared to the rest of the crypto market.
“The AAVE token is underperforming and has barely doubled since early 2021. Nearly every DeFi token has struggled to keep up with the rest of the market since crashing last May.
This seems to be because the hype has turned to the NFT. This is something AAVE founder and CEO Stani Kulechov acknowledged during a panel discussion in October.
Essentially, he says that while DeFi is fun and often profitable, it’s too complicated for the average person.
Meanwhile, the NFT offers comparable levels of excitement and growth. They are a concept that almost anyone can understand.”
Last year, AAVE rallied from under $100 to an all-time high above $660 on May 18 before falling more than 70% to $184 at the end of June. After rebounding more than 400 dollars in mid-September, the altcoin ended the year on a downtrend until a rally in late December took AAVE from $180 to $255.
Guy notes Aave’s upcoming V3 upgrade will draw more interest in the project.
“The biggest milestone coming up is the launch of Aave V3, which introduces many new features to Aave Protocol.
The first is the Portal feature, which allows lenders and borrowers to transfer any tokens they have deposited into 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 on Aave V3 is the isolation mode, which can introduce new tokens to the Aave protocol while minimizing the risk to the rest of the protocol.”
Guy also mentioned Aave’s plan to influence the future of social media by releasing a decentralized social media platform in which users cannot be censored or removed.
“Aave’s social media platform will be built in such a way that your social media profiles as well as any other content you create on Aave’s platform can be migrated to any media platform. No other decentralized social media exists on Ethereum, so it cannot be censored.
Regarding the specific release date, Aave said their social media platform is coming soon and the reason for the slow implementation is because the team has mainly focused on Aave V3 for the past few months…
Stani predicts decentralized social media will be the next niche after NFT.”
The analyst concludes by giving his price prediction to AAVE.
“With a market cap of just $3 billion, this 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 for $237.1.
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According to Dailyhodl