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. In our latest altcoin news, we can see that LEND has a chance of doubling soon.
LEND suffered a short-term collapse in DeFi which was caused when Chef Nomi withdrew $14 million worth of coins from SushiSwap. Analysts remain optimistic about Aave’s LEND due to multiple fundamental and technical reasons. The gold fractal analysis noticed by a crypto trader, suggests that LEND will surge by 100% in the months to come and the fractal also shows that the macro price action looks similar to gold’s price action since the abolishment of the gold standard. The comparison suggests that LEND is on the verge of a parabolic growth trend having consolidated after the initial uptrend.
The top venture capitalists in the industry are quite optimistic about LEND’s potential in the DeFi space as Spencer Noon of DTC capital argued that Aave managed to garner more than $1 billion worth of value locked in contracts without liquidity mining schemes which is a positive sign for the protocol’s product-market fit:
“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.”
This was echoed by Multicoin Capital managing partner Kyle Samani who said that Aave’s product-market fit will mean that if he had to choose one DeFi asset on ETH to own for two years, it will have to be LEND:
“If I had to hold a single Ethereum based DeFi asset for 2 years, it would be $AAVE. By far the best combination of: product/market fit, token distribution, community, pace of innovation, and reasonable valuation with upside to go.”
How these long-term trends will affect the short-term price action, it is currently not clear. As recently reported, a year or two ago no one would have predicted a rise like this for the DeFi space, LEND is now shining and there are many crypto assets that are representing the world of decentralized finance well. The truth is, the innovation, better education, search for yields, and more made DeFi become mainstream in the crypto marketplace.
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