Gold Fractal Predicts the Ethereum-Based LEND Could Double in Months Ahead

Like other crypto assets, LEND underwent a strong correction last week. The cryptocurrency came under pressure as Bitcoin and Ethereum dipped lower as the legacy market declined. LEND also suffered a short-lived DeFi collapse triggered by Chef Nomi’s departure from SushiSwap.

Analysts remain optimistic about the cryptocurrency, Aave’s original token, for several fundamental and technical reasons.

Related Reading: This European Crypto Exchange Just Got Hacked For $ 5 Million

Credit can double: analyst shows how

First a fractal analysis noticed by a leading cryptocurrency trader suggests that LEND will rise by more than 100% in the coming months.

The fractal suggests that LEND’s macro-price action is similar to the price action of gold since the abolition of the gold standard. The comparison suggests that LEND is on the verge of a parabolic growth trend, after consolidating an initial upward trend.

Chart of LEND's price action over the past few years with a fractal analysis/comparison to gold's price action over the past few decades by crypto trader SmartContracter (Twitter handle). Chart from TradingView.com
Related Reading: Here’s Why This Crypto CEO Thinks BTC Will Hit $ 15,000 Soon

VCs are bullish on the currency

Top venture capitalists in the industry are optimistic about LEND’s potential in the ever-changing DeFi space.

DTC Capital’s Spencer Noon argued that the fact that Aave has managed to amass more than $ 1 billion in value tied up in its contracts with no liquidity mining arrangements is a positive sign of the protocol’s product-market fit:

“One of the best signals from PMF in #DeFi is whether a project can succeed without additional incentives (liquidity mining). @AaveAave does not have an LM, but it is still one of the biggest beneficiaries of new farming activities. With $ 1.26 billion TVL and only $ 759 million in mcap – the fundamentals are that strong. “

This was echoed by Kyle Samani, managing partner of Multicoin Capital. He said that Aave’s product market fit would mean that if he had to choose one DeFi asset on Ethereum to own for two years, it would be LEND:

“If I had to keep one Ethereum-based DeFi asset for 2 years, it would be $ AAVE. By far the best combination of: product / market fit, symbolic distribution, community, pace of innovation and reasonable valuation with even more benefits. “

However, how these long-term trends will affect price action in the short term is currently unclear.

Related Reading: CNBC’s ‘Mad Money’ Host Jim Cramer Finally Buys Bitcoin
Featured Image from Shutterstock

Price Tags: lendusd, lendbtc
Charts from TradingView.com
Gold Fractal Predicts the Ethereum-Based LEND Could Double in the Months Ahead