Popular youtube channel "Coin Bureau" says several decentralized finance (DeFi) altcoins are making a comeback. Coin Bureau host "Guy" talks about DeFi making a comeback even though most cryptos have entered a bear market.
Guy noted that Aave (AAVE) has recently rebounded as it launched a new decentralized stablecoin. Guy predicted that Aave could continue the price trajectory up to $120.
The Coin Bureau host told the YouTube channel's over two million subscribers that the AAVE price was undervalued:
“Today (July 14), Aave's ecosystem reserve has only 1.7. Etherscan suggests that the number of AAVE token holders continues to increase, and I suspect this is due to the AAVE token price dropping significantly. The price drop made it more attractive to investors.
During the last video, I noticed comments arguing that Aave is not undervalued because the price of AAVE is high and is still undervalued, possibly because its market cap is four times smaller. Total value locked in the Aave protocol. What matters is market cap, not price tag. Always remember that it is.”
Analyst Guy believes that the dollar-based decentralized algorithmic stablecoin GHO, proposed by Aave Companies on July 7, should increase demand for AAVE.
"The fact that most of Aave's supply is in circulation means there isn't much selling pressure, and that seems to be the rationale behind allocating interest rates from GHO stablecoins to Aave treasury.
The launch of the GHO stablecoin should also increase the demand for AAVE as it will enable Aave stakers to print GHO at near zero interest rates. It should be noted that an increase in Aave staked can dilute the overall staking reward, which in turn will result in Aave is that it can weaken the second demand factor."
As for where the AAVE price is headed, Guy said:
“The developments will not change the fact that we are currently in a crypto bear market, but will help propel Aave to astronomical heights when the next bull market comes, especially if the GHO stablecoin is adopted in earnest.”