25 July 2021: In less than 24 hours after the official launch of Ampleforth borrowing/lending on the DeFi platform Aave, AMPL reached 100% utilization. This means that no more AMPL is available for borrowing at this time. This is a monumental boost to a newfound future within the Ampleforth protocol. This article will examine the recent success of lending on Aave, consider the implications of the current expansionary momentum of AMPL, and bring some historical insight into previous positive rebasing periods.
AMPL 100% Utilized on Aave
A long anticipated stepping stone for Ampleforth development, the official launch of borrowing on Aave lived up to the hype. Lenders & borrowers didn't miss a beat, pushing AMPL to full utilization. With the successful integration of AMPL across different blockchains, including that of Ethereum, Binance, & Polygon, there was little doubt that the Ampleforth development team would have any issues integrating lending.
That expectation was met ten fold. In historic fashion, AMPL, across all blockchains and even including the new lending contracts via Aave, rebased simultaneously and without issue. If there was any doubt left out there about AMPL's security, scalability, or durability, those doubts can now be put to rest.
Following the new hype for Ampleforth, AMPL has now experienced its first positive rebase in two months. These rebases were also historically large for an immediate transition into positive rebasing from zero or negative, directly correlating to the massive demand increase following the Aave announcement. The rebasing took a massive jump up from an even zero straight up to 2.9% and then nearly 4.5%. This is what rebasing on AMPL actually looks like:
Rebasing is just the term for the algorithm directly adjusting the supply to work towards the price target of an inflation-adjusted 2019 USD, which is now $1.042. This is how the volatility is present within the supply of AMPL rather than the price for the long term. So, positive rebases mean you are receiving that percentage back in new added AMPL to your wallet with each daily rebase compounding onto the last. For example, a wallet with 100 AMPL after these two most recent rebases would now have 107.5 AMPL.
The AMPL price chart is truly a mesmerizing sight to see. Since the Aave announcement, AMPL increased by over 90% in price, leading to the sizable rebases already seen the past two days. Again, it is important to note that AMPL is built to be supply volatile, but price will still see volatility with a massive demand/supply change as we saw with Aave. Take a look at the price chart:
Take note of the recent candle on the right from this most recent demand jump. The resemblance to the previous expansion event for AMPL, typically referred to as DeFi Summer back in summer of 2020, is very keen to the current rally taking place. The next expansion of AMPL have been projected to possibly take it into the billions with a similar expansionary cycle to 2020. For reference, check out the rebasing from this last expansionary period:
Two things are very notable in the above graphic. First, some of the rebases during this period were absolutely massive. On 13 July 2020, the daily rebase for AMPL was a whopping 27%. Additionally, the supply of AMPL (very right column) exploded from around 20 million to 750 million AMPL in just a handful of weeks. This is the premise for the next expansion cycle taking AMPL into the billions.
To view the entire history, go to this link HERE , and at the top of the page simply click All and scroll down to see previous data.
The profound success of the official launch of borrowing / lending on AMPL via Aave is the final nail in the coffin for all other competitors, including any stablecoins currently available. Remember, unlike any other similar protocol, AMPL does not require collateral, is scalable without compromise, and could be the most durable coin within the cryptocurrency market.
Ampleforth is still in the shadows in terms of the big cryptocurrency names. This will undoubtedly change in the coming weeks, months, and years. As always, RekTimes still encourages our readers to research the Ampleforth protocol, learn the economics, and then come to an investment decision prior to making any moves. For the foreseeable future, we feel that both AMPL & FORTH are both immensely undervalued and have not come close to their ultimate market potential.
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