The LEND token skyrocketed by 8000 percent against Bitcoin in the latest over-extended price rally as the Aave native token is now the third-biggest DeFi platform by total value locked. LEND went up about 8,087% against Bitcoin in the past 12 months while the investors started dumping their coins on the FOMO buyers as we are reading more in the upcoming altcoin news.
In the meantime, the TVL on the platform increased by 68% in a day and reached $416 million today according to the Defi pulse data. LEND surged by 47% in the previous week which made it the best performer among the top 60 assets by market cap. The token also increased by 4.5% over the past 24 hours reaching a $0.35 as of press time. The LEND Token jumped by 7,021% against USD in the past year surpassing the previous all-time high which was reached in 2018.
If collateral is a lending protocol's unforkable moat (for now), it meant the market was starting to price the value locked in Maker and Aave as the same. pic.twitter.com/3JeCJKSZ6Z
— Jason Choi (@mrjasonchoi) July 19, 2020
In the meantime, Kelvin Koh, the co-founder, and partner of the crypto hedge fund Spartan Capital said that his earlier $450 million predictions for AAve’s TVL look more conservative now. Instead, Koh said that he believes Aave’s TVL will challenge Compounds COMP TVL in just a few weeks which will provide more fuel to the LEND token. As referenced in the tweet the prediction came two weeks ago after Kohn predicted the roll-out of the Aave credit delegation system which will be a game-changer that will cause the TVL measure on the platform.
However, Koh is not the only one who is bullish on Aave. The research head of the fund Jason Choi posted on Twitter that he pitched two months ago to his company that the LEND market capitalization will overtake that of Maker’s MKR token. MKR is now ranked at 29th position by market capitalization while LEND is on 31st.
The bullishness of the token seems to have been boosted by the news from the crypto investment firms Framework Ventures and Three Arrows Capital which purchased $3 million worth of LEND tokens while pledging to actively contribute to the growth of the protocol. However, the ownership metrics raised concerns about LEND according to analysts:
“In general, the total number of addresses with a balance of a token tends to rise along with its price. However, this has not been the case for LEND in 2020, with the number of holders dropping by year-to-date.”
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