Analyst with Million Subscribers: This Altcoin Could Rise Astronomically!

The million-subscribed Youtube analytics channel says a popular DeFi altcoin project will rise astronomically after a bear market.
 Analyst with Million Subscribers: This Altcoin Could Rise Astronomically!
READING NOW Analyst with Million Subscribers: This Altcoin Could Rise Astronomically!

A million-subscribed Youtube analytics channel says a popular DeFi altcoin project will rise astronomically after a bear market. Keeping in mind that estimates are not exact, let’s take a look at Coin Bureau’s analysis.

Ready for astronomical highs after this DeFi altcoin bear market

AAVE continues to lose value amid the current market crash. However, in his latest video, Coin Bureau analyst “Guy” talked about a possible rally for AAVE. The analyst, who appeared before us with a Nusret-themed t-shirt, says the following in a part of the video:

According to Etherscan, the AAVE ecological reserve currently has only 1.7 million AAVEs. Etherscan shows an increase in AAVE token ownership on the demand side of this economic equation. I’m also assuming that this is due to the token’s sticker price, which has dropped drastically, making it more attractive to investors who don’t pay attention to market cap.

Aave will launch its own stablecoin called GHO

Guy also talks about GHO, Aave’s new stablecoin project. The analyst says the stablecoin will increase demand for AAVE:

What matters is the relative lack of demand factors for AAVE. Current uses of the AAVE token are limited to management and staking, which provides an attractive payout, although it carries a marginally higher risk than alternatives.

As for the importance of the GHO to Aave, the analyst has very high expectations. In Guy’s words:

The good news is that there isn’t much selling pressure left as the majority of Aave’s supply is in circulation. This seems to be the rationale for transferring interest rates from the GHO stablecoin to the Aave treasury. It reduces the selling pressure on AAVE and ensures system survival.

As we reported as Kriptokoin.com, Aave held a Twitter meeting on GHO stablecoin in the past hours.

https://twitter.com/AaveAave/status/1547665099539722246

On the other hand, the analyst highlights some problems in the relationship between GHO and AAVE:

The GHO stablecoin will increase demand for AAVE as it will allow stakeholders to print GHO at near zero interest rates. The caveat is that an increase in staked Aave could disrupt Aave’s second claim driver, reducing the overall staking incentive.

The analyst claims that a number of variables, including energy and supply chain disruptions, an increase in interest rates and an increase in circulating supply, contributed to Aave’s loss of more than 70% of its value in January, creating potential of $40 million.

“Astronomically rising”

Guy also argues that demand factors will have little impact on AAVE due to the current recession. But he predicts things will change once the bear market is over:

The truth is, future demand improvements by Aave will not significantly change the fact that the cryptocurrency market is currently in a bear market. But especially if the GHO gets accepted, it will help the Aave token reach astronomical heights in the next bull market.

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