Top Crypto Analyst Points to ‘Good Opportunities’ in DeFi Tokens $AAVE and $COMPSeptember 10, 2022
A popular cryptocurrency analyst has highlighted potential trading opportunities for the native tokens of two decentralized finance (DeFi) projects, Aave and Compound, as both of these have managed to hold their positions throughout the bear market.
According to the pseudonymous cryptocurrency analyst known as Altcoin Sherpa, who shared his thoughts on social media with his over 180,000 followers on the platform, Aave’s governance token $AAVE is “going to be an absolute steal” at current prices.
Sherpa’s reasoning stemmed from most tokens emissions being done with, which to him means there’s “not much more sell pressure relatively.” The project maintains a significant total value locked (TVL) of $5 billion, making it the fifth-largest DeFi project on the Ethereum network.
Aave, Altcoin Sherpa said, has a “long history of being battle tested” and is still one of the blue-chip DeFi tokens. The cryptocurrency is, at the time of writing, trading at $91 per coin, up from a low under the $50 mark seen earlier this year. The cryptocurrency’s all-time high was above the $500 mark, CryptoCompare data shows.
Aave Companies, the main developer behind the Aave Protocol, has notably recently asked the project’s decentralized autonomous organization, governed by AAVE token holders, for $16.28 million during the bear market. It’s the first time the organization asked the DAO for funds.
At its height, the DeFi sector attracted billions of dollars in investment and saw activity surge, which generated millions of dollars in revenue. The value of DeFi protocols’ treasuries quickly surged, but the bear market has been taking its toll.
Aave DAO’s liquid assets now stand at $378 million, compared with $800 million in April. Lido DAO went from a similar figure to around $344 million. Uniswap’s treasury also dropped from $2.5 billion to around $1.7 billion.
Altcoin Sherpa also noted that there are other “good opportunities for active traders” on the market, and pointed to the governance token of borrowing and lending platform Compound Finance, $COMP, as an example.
Per the analyst, $COMP has experienced “several bear market rallies.” Nevertheless, he said passive investors could instead “scale into $BTC and $ETH.”
As CryptoGlobe reported, the popular cryptocurrency analyst has recently said there’s potential for ADA to surge at a time in which its rival platform Ethereum ($ETH) has been steadily rising and is showing a potential continuation pattern.
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