DataDash founder and Bitcoin analyst Nicholas Merten says a new crypto asset is poised to become the next decentralized finance (DeFi) unicorn to erupt.
Merten says he’s betting big on Ampleforth (AMPL) as he believes the coin is relatively undervalued. The crypto strategist highlights that AMPL has already gone through close to an 80% correction in terms of market capitalization.
Merten says the pullback has put AMPL in a position to restart its bull cycle as the DeFi asset is flashing bullish signals.
Based on Merten’s chart, the coin’s market cap can explode over 430% in the coming months.
Ampleforth bills itself as an “adaptive base-money.” According to Merten, the number of AMPL in circulation adjusts based on demand.
“The balance of Ample can increase or decrease and it uses a very similar kind of mechanism some might be familiar with in regards to DAI… In this case, as price goes up, they increase the overall supply in the network and along with that as well, when you see a decrease in price, in this case, the overall supply decreases as well.
It’s supposed to provide [the] pressure of limiting the supply on the market and vice-versa. When price goes up, you have more coins in the market. People are actually, as they’re holding it, not only is price going up, maybe above the peg but along with that, they’re getting extra coins. In this case, there’s a pressure to sell.”
According to the coin’s website, Ampleforth can serve as collateral in DeFi applications due to its unique market dynamics. The elasticity of the coin’s supply ensures that the value of anything denominated in AMPL, such as debt and contracts, remains stable despite the rise and fall in demand.