From death spiral to 12-day doubling, the familiar AMPL is back?
Editor's Note: This article comes fromDC News（ID：shenliancaijing）, Author: Mark, reproduced by Odaily with authorization.
Editor's Note: This article comes from
, Author: Mark, reproduced by Odaily with authorization.
The familiar inflation-stabilizing AMPL is back.
Crazy inflation in July, slow deflation from August to October, and the disappearance of AMPL heat began to rise.
Entering December, inflation began to reach more than 5% per day, and the heat of AMPL was ignited again.
Will AMPL also throw investors into FOMO sentiment? An article to understand the recent progress of AMPL.
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AMPL's money printing machine restarted, and the market value increased in November with low inflation
AMPL is known as an alternative stablecoin. It once broke out in July this year, and the daily increase of up to 10% has attracted investors, and the market value has increased by up to 40 times. It is known as a money printing machine that can make money while lying down.
As an algorithmic stable currency, AMPL does not have a fixed total amount like Bitcoin. It will adjust the supply through smart contracts according to changes in supply, demand and price. When the demand increases, the supply of AMPL tokens will increase, and vice versa, the supply will decrease.
However, the most important factor is the price, and this price is determined by the oracle machine, and a rebase will be performed at 10:00 every day.
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The relationship between AMPL price and Rebase
The price of AMPL is higher than $1.05, the higher the price, the higher the rate of token increase during Rebase;
The price of AMPL is lower than $0.95, the lower the price, the higher the ratio of token reduction during Rebase.
Therefore, when the currency price is higher than $1.05, as long as the currency price does not fall, you can earn tokens every day by putting the tokens in your wallet, and investors can also sell the tokens to make a profit.
This low-threshold high-yield gameplay instantly attracted many players to participate.
But there are problems with this model, as long as the price falls below $1, it may enter a death spiral.
For example, during the three months from August 1, 2020 to October 31, 2020, AMPL has been reducing tokens for 68 days, and the total amount of tokens has decreased from 750 million to 203 million, a decrease of 7.282 billion. %, users who hold tokens will lose about 60% during this period.
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AMPL November data details
In the past, the price would drop sharply after the rebase at 10:00 every day, but now the volatility of smashing the market has been greatly reduced. After going through a death spiral, AMPL's ability to resist selling pressure has strengthened.
Judging from the price of AMPL, it has broken through from $1.1 to a higher price, and the current price is around $1.6, and Rebase has also started to slowly enter 5% from 1%.
AMPL Rebase Details
Once the price of AMPL rises to around $2, the daily rebase of AMPL will be as high as 10%, which means that AMPL has entered a period of rapid growth. High returns will make investors FOMO. As long as the price of AMPL is stable, the currency standard will double in 10 days, which will attract more investors to participate. Incremental users and funds will grow faster in a short period of time, which will increase the price, and the income obtained by Rebase will also increase significantly.
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During this process, the price of AMPL will change very quickly, and a large number of increased coins will be sold out. Once users and funds cannot support this huge market value, the price of AMPL will soon fall again, and then it will be the stage of currency reduction . Going back and forth like this, AMPL will eventually return to its true value.
AMPL has started to rise recently, let's look at three reasons related to the rise of AMPL.
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AMPL opens geyser rewards in 3 major DEXs
The last round of AMPL’s explosion also started liquidity mining rewards. In June, there were not many Uniswap users. AMPL’s unique features quickly rushed to the top of the locked fund pool, attracting many users to participate, and the price has been rising all the way.
Recently, AMPL launched geyser reward activities in three major DEXs:
On November 21, AMPL announced that a new round of geyser rewards will be launched, listing SushiSwap, Balancer and Uniswap respectively, and sharing 3.9 million AMPL.
On November 25th, AMPL started liquidity mining activities on Balancer. In just 4 hours, the amount of funds in the pool has exceeded 1 million US dollars.
On November 26, Balancer officially announced a governance vote to increase the upper limit of AMPL liquidity mining funds from $1 million to $3 million. On the same day, AMPL started liquidity mining activities on Uniswap.
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Annualized details of AMPL liquidity mining
Moreover, the liquidity mining rewards on SushiSwap, Balancer and Uniswap currently have an average APY of more than 200%. In reliable DeFi projects, this rate of return can attract many users to participate. In particular, when Uniswap first started AMPL liquidity mining, it had an APY as high as 4000%, which attracted many users to buy AMPL for mining. The demand for AMPL is high in a short period of time, and the price naturally rises slowly.
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The popularity of AMPL is rising, and the market expects high
AMPL WeChat Search Index
The popularity of AMPL this time is mainly driven by foreign communities. After a long period of currency reduction, the domestic community’s attention to AMPL has declined, and even many groups that participated in AMPL early have become dead groups. However, judging from the recent WeChat search index, the search index of AMPL has skyrocketed, and the daily search volume has increased by 96.39%, and the popularity of various communities has begun to rise rapidly. Domestic communities have begun to re-create AMPL group chats, and there are signs of large-scale discussions on AMPL.
AMPL Google Search Index
In addition, from Google’s AMPL search index, we can clearly see its popularity abroad. In the past 7 days, the search volume has increased by 9 times. The main search content is about AMPL Rebase and the price on Coingecko.
Data details on AMPL Uniswap
From the recent transaction data of AMPL, we can see that the price has been rising steadily. Moreover, the recent increase in trading volume has been particularly rapid. In just 24 hours, the trading volume has increased by 27.1%, and the daily turnover has exceeded 6.82 million US dollars. The funds in the ETH/AMPL liquidity pool have also doubled in the past month, reaching $16 million.
AMPL lockup and transaction data details
According to professional statistics, the current total liquidity lock-up of AMPL is about 36 million U.S. dollars, and the total transaction volume is 2.3 billion U.S. dollars.
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AMPL Supply and Market Cap Data Details
Judging from the overall trend, AMPL began to move forward towards the crazy moments in the past.
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The application scenarios of AMPL are expanding
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Ampleforth announces cooperation with other public chains
In addition, the Ampleforth Foundation also announced that it will cooperate with TRON, Polkadot and Near. AMPL can be seen on more public chains in the future.
In addition to this, the official also revealed that more blockchain integrations are expected soon, most will be done entirely by external third parties, and these integrations will be put into use in the next few months.
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At present, AMPL has become the cornerstone of DeFi. The founder of AMPL initiated a proposal in AAVE, suggesting that AMPL lending should be added in AAVE. There are many discussions in this proposal, but there is no conclusion yet. However, if AMPL can maintain a relatively stable price and have a large number of currency holders in the future, it will be a good choice for top DeFi projects.
There are still many positive expectations about AMPL, such as being nominated by Coinbase, but it has not yet been listed on the three major exchanges due to special reasons. Moreover, stable currency projects will be subject to strict supervision in the future. Members of the U.S. Congress have already required stable currency issuers to obtain bank license regulations. For AMPL with large institutional backgrounds such as Coinbase and Huobi Fund, compliance will be reduced. in a relatively favorable position.
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Judging from these aspects, the popularity of AMPL is indeed picking up rapidly, and unlike the previous hype, the rise this time is relatively stable, and behind it is slowly contributed by multi-dimensional benefits.
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But for a blockchain project to be truly applied, a large number of users and actual business support can go further. At present, AMPL as a stable currency does not have many practical application scenarios, and it is still in the stage of being hyped by the market.
