2023-05-11
TraderJoe is a decentralized exchange
and a lending and borrowing platform. It has a fully diluted market cap of $168
million. TraderJoe’s total value locked is $108.59 million.
1. You have already invested in AVAX.
If you already have AVAX in your portfolio, you can use it to invest in TraderJoe. There are many reasons to invest in AVAX. AVAX is one of the most valuable smart contracts blockchains.
Not only Avalanche is the 5th
largest smart contract blockchain by market cap (fully diluted), but also it has
the potential to grow. AVAX has a limited supply of 720 million tokens.
Smart contract blockchains
1. Ethereum values $220 billion at a
fully diluted market cap. (very low inflation).
2. BNB Chain values $48.6 billion at a
fully diluted market cap (relatively limited supply).
3. Cardano values $16.4 billion at a
fully diluted market cap.
4. Solana values $11.1 billion at a
fully diluted market cap (1.5% long-term inflation rate).
5. Avalanche values $11.0 billion at a
fully diluted market cap (limited supply).
6. Polygon values $8.6 billion at a
fully diluted market cap (limited supply).
7. Aptos values $8.6 billion at a fully
diluted market cap (low inflation rate).
7. Polkadot values $7.0 billion at a
fully diluted market cap (10% inflation rate).
8. Tron values $6.2 billion at a fully
diluted market cap.
9. Cosmos values $3.1 billion at a fully
diluted market cap (7% inflation rate).
Avalanche is the 7th largest
blockchain by total value locked (TVL).
Total value locked by blockchains.
1. Ethereum $27.26 billion
2. Tron $5.47 billion
3. BNB Chain $4.62 billion
4. Arbitrum $2.38 billion
5. Polygon $956 million
6. Optimism $860 million
7. Avalanche $757 million
As of May 11, 2023.
2. TraderJoe is the largest
decentralized exchange in Avalanche.
Uniswap is the largest DEX in Ethereum.
PancakeSwap is the largest DEX in BNB Chain. TraderJoe is the largest DEX in Avalanche.
DeFi platforms are winner takes most. Uniswap
and Curve capture most of economic value from DEX in Ethereum blockchain. Aave
capture most of the economic value of lending platforms in Ethereum blockchain. When
people want to invest in DEX in Avalanche people think of TraderJoe.
TraderJoe is the leader of DEX in
Avalanche. There is a tendency that if Avalanche’s DeFi grows, TraderJoe will
capture most of economic value from the growth of DeFi in Avalanche.
3. TraderJoe pays a portion of its
revenue to users.
0.05%
of all trades are paid to sJOE staking pool. A portion of fee is deducted from every swap
and used to buy a stablecoins which finally will be distributed to all sJoe
stakers.
Currently
sJoe pool is 1.75% APY.
4.
MetaMask supports TraderJoe.
You
can add JOE tokens on your MetaMask and you can invest in TraderJoe either
provide liquidity or lending, using MetaMask.
5.
You can get JOE token as a reward for supporting the platform.
JOE
is a governance token of TraderJoe. veJOE staking pool allows users to boost their JOE rewards. Users
can stake veJoe to earn more JOE tokens.
6.
Cheap Swapping Fees
TraderJoe
runs on Avalanche which provide a lot cheaper for swapping fees when compare to
Uniswap that runs on Ethereum. It supports users who want to invest in DeFi but
don’t want to pay high gas fees.
What
is the price of JOE should be?
The
price of JOE can be calculated by compare with the ratio price of CRV and CAKE.
If the price of JOE is equal to or less than CRV or CAKE. It means JOE is
cheap. If the ratio price of JOE is more than CRV or CAKE. It means JOE price is
expensive.
CRV fully diluted market cap is $2,727,355,058
Curve TVL is $4,290,000,000
CRV market cap is 57% of Curve’s total
value locked.
CAKE fully diluted market cap is $1,430,000,000
billion
PancakeSwap TVL is $2,100,000,000
CAKE market cap is 46% of PancakeSwap’s
total value locked.
JOE fully diluted market cap is $168,318,857 million.
TraderJoe TVL is $108 million
JOE market cap is 55% of TraderJoe’s
total value locked.
From the calculation JOE has the similar
price as CRV and CAKE. Due to
TraderJoe’s smaller TVL, it is easier to drive up the price of JOE than CRV or
CAKE.
TraderJoe price is relatively cheap
right now. If the price of JOE is below $0.3, it considers cheap.
Learn more about TraderJoe here.
