Hiding in Plain Sight: Will BAT's Price Catch Up to the Rest of DeFi?
The price of crypto has been on a tear lately. The DeFi coins and TVL - total value locked - has been skyrocketing, but not all crypto projects seem to have benefited from this crazy rally in price. I've talked many times about my crypto investments and how I focus almost entirely on BTC, ETH, BAT and HIVE.
BAT is the token I want to focus on today and many in the space are wondering if BAT's time to shine is overdue. While many of these DeFi coins that seem to have popped up out of nowhere are going to the moon, projects that have real use case and a wide userbase like BAT are still locked at the ready.. Waiting for their moment.
Flipside crypto is provides blockchain analytics for many of the top cryptocurrencies. On their website, they've got a flow chart showing the asset flows of BAT.
What I'm noticing from this chart is that there is a lot of activity going on between DeFi and the userbase of BAT. Brave recently crossed over the 12m monthly active user mark and while not all of those users are BAT hodlers/users, they are potential BAT hodlers/users - which is meaningful to me.
BAT Supply Activity 7/18 - 8/5 via Flipside Crypto
Brave is the audience and BAT is the utility. I like the BAT team's approach to building a project - they're constantly working on the Brave browser and are pushing the envelop in terms of making the best product available while they simultaneously build a wide group of users. The BAT ecosystem is going on in the background and most of the users of Brave aren't even aware of it (yet).
If you look at some of the most popular companies and influencers of today, you'll see that they followed a similar model: build audience, then monetize.
The DeFi Use Case for BAT
Thanks to the interconnected society that is cryptocurrency, we've seen BAT adopted as the single most utilized crypto in all of DeFi. Between the launch of COMP and several other factors, BAT generated a transaction volume of $931 million USD (more than ETH and DAI combined).
I'm not sure if it was just the Comp crazy of early 2020 or if this trend of BAT as the most utilized DeFi coin will continue. Either way, I see a lot of different use cases for BAT in the future. The fact that the token is getting used for DeFi is just a show of confidence by the ecosystem in my opinion.
In the short term, I look at this as a potential win as a speculative investor. In the long-term, I'm still betting on the abiltiies of the Brave/BAT team to execute on a 1-20 year roadmap that will bring in hundreds of millions of Brave browser users and convert a % of those users into paid viewers of ads and ultimately, users in the BAT ecosystem.
Needless to say, I've been stacking BAT over the past 2 weeks.. expecting a major rally as the coin lags behind the rest of DeFi in terms of price but leads the charge in terms of transaction volume generated.
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