Aave’s LEND Is The Most Undervalued ETH DeFi Token: Analysis

Aave’s LEND is the most undervalued ETH defi token despite the coins in the space saw parabolic growth in the recent month and outpaced every other financial market. There’s no other coin that shows this as well as LEND, the native token of Aave’s protocol as we are about to read more in our altcoin news.

Since the start of the year, the coin rallied over 5000 percent which means it started the year at less than $0.01 but it’s now trading at $0.588. Despite the parabolic growth trend that thrust LEND into the center of attention, some believe that Aave’s LEND is the most undervalued token. Spencer Noon, the head of DTC capital believes that LEND could be the most “undervalued DeFi token today” because it has outstanding debt. The aggregate value of the on-chain loans issued by Aave hit an all-time high. Also, the number of unique lenders that actually use aave per day, hit an all-time high as well.

The fundamentals indicate $LEND might be the most undervalued #DeFi token today:

– ATHs outstanding debt
– ATHs unique lenders/day
– $440M flash loan vol
– Largest protocol @defipulse
– 0.6 Mcap/TVL ratio

All happening organically *without* liquidity mining/recursive leverage pic.twitter.com/VbQmsPFjDc

— Spencer Noon (@spencernoon) September 15, 2020

Furthermore, $440 million worth of flash loan volume was processed and Aave topped the Defi leaderboards according to Defi pulse. The market cap to total value locked in Aave hit 0.6 which shows that LEND is far undervalued compared to other protocols. This is not the first time that Noon clapped back at cryptocurrencies. Noon initially remarked his followers that Aave accrued so many users and so much locked value without having liquidity mining incentives to show the real value:

“one of the best signals of PMG in DeFi is if a project can succeed without extra incentives (liquidity mining). Aave doesn’t have LM yet it’s still one of the biggest beneficieries of new yield farming activity. At $1.26 billion TVL and only $795 million market cap, the fundamentals are so strong.”

Even at a $3 billion mcap $UNI is still only valued at less than 7x annualized revenue

Taking its closest comp @BalancerLabs which is at 17.5x that would put $UNI at $7.5 🤑

— Jack Purdy (@jpurd17) September 17, 2020

LEND’s claim to the spotlight as an undervalued Defi protocol could soon come under pressure with the launch of the Uniswap UNI token. UNI is a coin that has no value but it has the ability to govern the Uniswap decentralized exchange. Analysts soon expect it to become a coin that will accrue value via dividends that will be from the millions of dollars worth of tradings across exchanges each day.

A few days however, we reported that One gold fractal predicts that Aave’s LEND  could double soon as it underwent a strong correction over the past week. The cryptocurrency got under pressure due to Bitcoin and Ethereum getting lower as the legacy market dropped.