Autofarm Secures Massive TVL
Autofarm is a relatively new DeFi yield farming platform primarily running on Binance Smart Chain. Prior to the recent dump, Autofarm was well on the way to securing $2 billion in TVL when it suffered a significant outflow as many chose to flee to the safety of USDT or perhaps even BTC, in anticipation of a bounce and significant move to the upside.
Autofarm has managed to secure a large portion of market share even though it is still early days and their upcoming DEX is yet to launch. It is almost crazy to think that AUTO was trading hands at $23 a month ago and recently reached a local top of almost $14 000!
Some may think that perhaps this ship has already sailed but let's look at a few dynamics that could indicate otherwise.
Bullish Cases For AUTO
In a similar case to YFI, the maximum supply of coins is very low at 80 000, which guarantees market cap expansion in the event that Autofarm is even relatively successful. When YFI was a couple of thousand dollars, many believed that it was way too high and overvalued. YFI has since seen an all time high of almost $52 000 and we are still very early on in this bull market and even earlier on in the growth of DeFi and Crypto as a whole.
The graph above also indicates a 66% dump from the recent local top, which could still drop further to approximately $2500 or $3000! AUTO is moving into a classic accumulation zone in heavily discounted territory. The fact that Autofarm has gained so much adoption and trust in such a short amount of time is also a very clear indicator that the market has singled out the project to be a leader in the space.
Autofarm is currently number 3 on Defistation and can definitely move into the Top 2 if the project progresses as planned. A 66% discount is very much a great opportunity in my opinion, especially if prices turn lower. It is also very important to look at market cap and ranking! AUTO is currently ranked 316 on CoinGecko and has a market cap of only $62 million at the time of writing.
The launch of the Autofarm DEX is also very likely to contribute a massive amount of value to the AUTO price, as it is expected to process a significant amount of volume. One of the great advantages to yield farming on Autofarm is that part of your rewards are paid out in AUTO, so farmers can accumulate AUTO for free at these reduced prices. As the DeFi sector continues to mature and grow, I highly anticipate AUTO to rise dramatically in value.
This is not investment advice and personal research should always accompany any investment. Here's to finding the gems of tomorrow!