The leading LEND token dives by about 15% despite the positive fundamentals that the coin has with the new token AAVE. The coin is now trading down by 15% over the past day which means is underperforming Bitcoin’s mild -0.5% performance so let’s read more in our latest altcoin news.
The cryptocurrency’s drop came in spite of Aave having strong fundamentals. Not to mention, all of the Defi remains in a growing trend as investors are still continuing to scrap traditional platforms for the new blockchain-based applications which can provide a better user experience. The drop in the price of LEND/AAVE came in spite of the Aave protocol founding itself touting strong fundamentals. Spencer Noon head of DTC Capital said that the coin will be the most undervalued token:
“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, Kyle Samani, the notable investor said that if there was one DeFi coin that he had to hold for two years, it would be LEND. AAve itself was in the middle of a transition between the old cryptocurrency and the new token called AAVE. This new token will allow the users to govern the protocol which means that it has an inherent premium to its price. The coin can be staked in a safety module which will allow users to act as insurance. The staking module will allow users to earn AAVE on their deposits with the percentage of protocol fees.
It’s not just the Aave fundamentals that are strong as Defi is now in a positive place because of a number of trends. Okex just announced that they froze all withdrawals after a private key holder started cooperating with a public safety bureau. Many saw the company’s ability to freeze the withdrawals as validation of decentralized exchanges which puts the power in the hands of the users to move the funds and trade the coins.
The leading LEND Token has been plummeting over the past 24 hours, but because of its strong fundamentals, can we expect a recovery soon?
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