This weekend, the cryptocurrency market continued to recover, with the major coins remaining in the green.BTC is approaching $44K resistance, while ETH is staying around $3.3K. Aave, on the other hand, is leading the race with gains of 9.1%.
The host of the famous channel Coin Bureau examines what the future holds for Aave, a decentralised lending and borrowing technology (AAVE).
Guy, a pseudonymous analyst with 1.87 million YouTube subscribers, claims in a recent video that the total decentralised finance (DeFi) sector is recovering from a fall in comparison to the rest of the crypto markets.
He says, since the beginning of 2021, the AAVE token has hardly doubled in value. Since the crypto market plummeted in May of last year, nearly every DeFi coin has struggled to stay up with the rest of the market.This appears to be because the focus has shifted to non-fungible tokens (NFTs).
Last year, Aave rose from under $100 to a high of almost $660 on May 18th, before plummeting by more than 70% to $184 by late June. After making its way back to over $400 by mid-September, the altcoin closed the year on the decline until a late-December spike that lifted AAVE from $180 to $255.
Upgrades in the pipeline
The planned V3 upgrade for Aave, according to the Coin Bureau host, could raise interest in the project.
“The most important upcoming milestone is the launch Aave V3, which will introduce multiple new features to the Aave protocol.”
He mentions the three features, i.e – Portal,high efficiency mode or e- mode and isolation mode. These features will upgrade the blockchain and work as triggers for adoption.
Guy also cites Aave’s aspirations to shape the future of social media by launching a decentralised social media network that can’t be blocked or erased.
The expert closes by predicting the price of AAVE.
“With a market cap of just $3 billion, this means that AAVE could be undervalued by a factor of five, and its fair valuation could be well over $1,000.”
At the time of writing, AAVE is trading at $242.20 up by 10.6% in the last 24 hours.