Since AMPL is a tipping token on Publish0x I tend to pay more attention to it than I otherwise would. One of the reasons for this naturally is it is a tipping token I am getting rewarded in it after all! I should definitely keep an eye on how that asset is performing! The other reason though is Ampleforth is targeting and attempting to fix a very specific but problematic thing. Purchasing Power.
A variety of things have driven the price of AMPL up considerably in the last couple of weeks. Just last week you had Twitter and Square CEO Jack Dorsey tweet out and comment on the possibility of hyperinflation due to government spending. I wrote about how these comments by Dorsey and the price run-up with AMPL were right around the same time. Since then though several other developments have occurred with Ampleforth that have not only benefited the project but solidified its place in the crypto space.
Ampleforth's elastic token AMPL, the one pegged to a $1 roughly, was also been integrated onto the Avalanche blockchain which is a fast-growing and quickly expanding blockchain. This adds yet another use case for AMPL which is always a good thing to have along with giving Avalanch a different option besides using centrally backed stablecoins! Another huge development was that AAVES lending platform has integrated utilizing AMPL for its loans which is something that was really lacking! It is my hope that if this launch goes over smoothly we could see additional lending platforms add AMPL to its offerings!
Lastly and possibly the most important thing is that a new paper was published by the Ampleforth Network that investigated its durability with all of the crazy market fluctuations that have occurred. The data analyzed went from July 2020 to October 2021 providing plenty of data points. While the price of AMPL has fluctuated the point of the currency is to make sure that your purchasing power remains the same. If the price goes up 10% then when it rebases you will receive the proportional amount to what you bought in at. This differs it from other stablecoins by doing this very thing and users having fluctuating amounts in their wallets.
GIven this AMPL is not perfect but its long-term results are spectacular. It has remained within 20% of its peg 70% of the time which is a market world like crypto is extremely hard to pull off. In the paper, they show graphs and charts breaking down how even with the up and downs overall it flattens out right around that $1 USD mark! Overall the data shows that the Network has been able to hold up and long-term maintain and continue to be right around the peg. By being independent of collateralization it does not have to worry about assets behind it fluctuating in value. By really limiting price issues over the long term by taking the price fluctuation and moving it to supply this asset class could be in store to really benefit and helping people across the world.
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it!
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