One of the notable crypto analysts is of the opinion that Aave, a decentralized borrowing and lending platform will pick up once the bear market settles.
Anonymously known as Guy a Coin Bureau host, informs his 2.08 million Youtube subscribers that in the course of ongoing market crunch, AAVE is undervalued.
The analyst says, according to Etherscan, Aave network reserve currently owns only 1.7 million AAVE. On the other hand, Etherscan states that the number of AAVE coin owners is increasing. As per the analyst, it is due to a substantial drop in the AAVE token retail value, which has now become more attractive to shareholders who aren’t concerned with market cap.
Furthermore, the analyst talks about the feedback during the last youtube clip disagreeing that Aave wasn’t really devalued as its ticker valuation rose once AAVE was undervalued. While advising his viewers, he says to look at the market capitalization, not the value.
GHO Stablecoin To Push Aave Price
Guy believes that the latest Aave stablecoin, GHO, will boost demand for the cryptocurrencies and what makes a difference is the AAVE token’s relative scarcity of requirements.
Guy believes that the utility of the AAVE token is presently restricted to governance and staking, and also provides an appealing benefit, though it’s marginally higher risks.
Meanwhile, while talking about the positive aspect, the researcher points that the majority of Aave’s production is in circulation, which means there’s not much sell tension remaining, and this appears to be the main reason for allocating interest rates from the GHO stablecoin to the Aave treasury. It helps reduce bearish impact on the AAVE token while also ensuring the protocol’s long-term viability.
According to Guy, the launch of the GHO stablecoin might also drive up prices for AAVE because it will allow AAVE holders to mint GHO at near-zero interest rates. Warning his views, the analyst says that an uptick in staked Aave may dampen the overall staking price, weakening Aave’s value.
As per the researcher, multiple aspects, such as energy and supply chain breakdowns, an increase in inflation, and a raise in total supply, contributed to Aave losing more than 70% of its significance in January, culminating in $40 million in a bearish market.
Guy believes that trends will have little effect on Aave prices due to the sheer bearish pull, but this will alter only when the bear market ends.
Guy asserts that Aave’s expected growth advancements will not modify the actuality that we are presently in a crypto selloff. However, he says they will assist the Aave currency surge to incredible heights once the upcoming bull market arrives, particularly if the GHO stablecoin acquires widespread acceptance.
