Your favorite crypto news blog

Leading DeFi Coin Aave’s LEND Dives 15% Despite Positive Fundamentals

Crypto 2020/10/16 12:00 by Nick Chong

Aave’s LEND token, along with its new token AAVE, has dropped heavily in the past 24 hours despite stagnation in the Bitcoin and Etheruem price. The coin currently trades down 15% over the past day, underperforming BTC’s mild -0.5% performance.

The cryptocurrency’s drop comes in spite of Aave having fundamentals that are stronger than ever. Not to mention, all of DeFi remains in a trend of growth as investors continue to scrap traditional platforms for these new blockchain-based applications that can sometimes provide a better user experience.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Aave Drops 15% Amid Strong Fundamental Trends

The drop in the price of LEND/AAVE comes in spite of the Aave protocol itself touting strong fundamental trends.

Spencer Noon, head of DTC Capital, once said that the coin may be the “most undervalued DeFi token today”:

“One of the best signals of PMF in #DeFi is if a project can succeed w/o extra incentives (liquidity mining). @AaveAave doesn’t have LM yet it’s still one of the biggest beneficiaries of new yield farming activity. At $1.26B TVL and only $759M mcap—the fundamentals are so strong.”

Also, notable investor Kyle Samani said that if there was one Defi coin he had to hold for two years, it would be LEND.

Aave itself has been in the midst of a transition between its old cryptocurrency, LEND, and a new token fittingly called AAVE. This new token will allow users to govern the protocol, which means that it has an inherent premium to its price. The coin can also be staked in a safety module, which will allow users to act “as insurance against Shortfall Events.” This staking module will allow users to earn AAVE on their deposits, along with a “percentage of protocols fees.”

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

All of DeFi Still Bullish

It’s not just that AAVE’s fundamentals are strong, all of DeFi is currently in a positive place due to a number of trends.

OKEx just announced that it has frozen all withdrawals after a private key holder began cooperation with a public safety bureau. Many see the firm’s ability to freeze withdrawals as validation of decentralized exchanges, which put the power in the hands of the users to move their funds and trade their coins.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: lendusd, lendbtc, lendeth, aaveusd, aavebtc, aaveeth
Charts from TradingView.com
Leading DeFi Coin Aave's LEND Dives 15% Despite Positive Fundamentals

0 Like(s)

You should also read...

Altcoins 09/06/20 20:00 by Priyeshu Garg
Ethereum Based DeFi Coins Are Outperforming Bitcoin in 2020: Here’s Why
Viewed as a sector, decentralized finance (DeFi) has shown a much better performance than the broader crypto market. Data has shown that major DeFi projects such as the Kyber Network, Loopring, Aave, ...
Read More
Altcoins 17/07/20 15:01 by Yashu Gola
Aave (LEND) Mounts 1,500% YTD; What’s Pumping This DeFi Token?
Aave, an Ethereum-based peer-to-peer lending platform, has emerged as one of the top investments in 2020. On Friday, the project’s native token, LEND, was trading 1,500 percent higher on a year...
Read More
Other 13/08/20 02:00 by Nick Chong
Here’s Why Aave’s LEND Is Up 30% in the Past 24 Hours: DeFi Craze
Decentralized finance — better known as “DeFi” — is back in style once again. This segment of the cryptocurrency market has been surging higher once again, with tokens pertaining to th...
Read More
Other 28/08/20 12:00 by Nick Chong
DeFi Darling Aave (LEND) May Face Correction as Price Reaches Overbought Levels
The Ethereum-based LEND, the native token for the Aave protocol, has seen a stunning performance over the past few months as DeFi has risen to prominence. The asset has gained in excess of 5,000% from...
Read More
Altcoins 04/10/20 01:06 by Nick Chong
Ethereum DeFi’s Aave (LEND) Gains 5% Amid Crucial Technical Change
Leading decentralized finance (DeFi) coin LEND, the native token of the Aave protocol, is up 5% in the past 24 hours. Its performance comes as the prices of both Bitcoin and Ethereum have stagnated. L...
Read More