Aave
AAVE
Target Name
Aave
Ticker
AAVE
Strategy
long
Position Type
token
Current Price (USD)
96
Circulating Market Cap ($M)
-
Fully Diluted Market Cap ($M)
-
CoinGecko
23 Aug 2024, 07:33pm
I don't love the $AAVE thesis -- and think Web3 funds could be posting something soon. Here are some bull arguments:
- 80 mm+ fees so 20x earnings. Ok but timing is sometime this year, not massive vs. say 7x PE when MKR was sending at 600-900, also rate cut imminent.
- Chain Abstraction liquidity narrative. IMO this is probably the most interesting side of Aave v4 -- i.e. liquidity acting as MM for cross-chain actions. Big fees and going after all the bridges and could really set the stage for mass adoption. But this won't happen for a while.
- Not super clear to me TVL is gonna giga-inflect serving as an upside catalyst if crypto continues to linger. But I concede it's a bull market bet and probably decent upside beta vs. ETH.
Overall could see it as an interesting long vs. say ETH and even MKR. But as it becomes a bit more consensus could also see it underperforming due to crowding and absolute sink / burn not enough to drive significant upside beyond say BTC flows and "MUH BETA SOL".
https://x.com/TaikiMaeda2/status/1818011789092864132
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