6 Reason To Invest In TraderJoe

TraderJoe is a decentralized exchange and a lending and borrowing platform. It has a fully diluted market cap of $147 million. TraderJoe’s total value locked is $82.5 million. It currently supports 4 EVM blockchains including Ethereum, Avalanche, BNB Chain, and Arbitrum.

Here are 6 reasons to invest in TraderJoe (providing liquidity, lend your cryptocurrencies, or buy JOE tokens).

1. You have already invested in AVAX.

If you already have AVAX in your portfolio, you can use it to provide liquidity and lend your AVAX to other people on TraderJoe.

AVAX is one of the most valuable smart contracts blockchains. Avalanche is the 20^th largest crypto by market cap. AVAX has limited supply of 720 million tokens.

Valuation of smart contract blockchains.

1. Ethereum values $198.230 billion at a fully diluted market cap. (limited supply unless Ethereum Improvement Proposal has been changed).

2. BNB Chain values $33.396 billion at a fully diluted market cap (limited supply).

3. Cardano values $11.549 billion at a fully diluted market cap.

4. Solana values $11.013 billion at a fully diluted market cap (1.5% long-term inflation rate).

5. Avalanche values $7.185 billion at a fully diluted market cap (limited supply).

6. Polygon values $5.519 billion at a fully diluted market cap (limited supply).

7. Aptos values $5.819 billion at a fully diluted market cap (low inflation rate).

7. Polkadot values $5.773 billion at a fully diluted market cap (10% inflation rate).

Total value locked by blockchains.

1. Ethereum $21.558 billion

2. Tron $5.237 billion

3. BNB Chain $2.915 billion

4. Arbitrum $1.671 billion

5. Polygon PoS $757.09 million

6. Optimism $665.68 million

7. Avalanche $506.49 million

As of September 1, 2023. 

Avalanche ranks number 7^th blockchain that has the most total value locked (TVL).

2. TraderJoe is the largest decentralized exchange on Avalanche.

Uniswap is the largest DEX in Ethereum. PancakeSwap is the largest DEX in BNB Chain. TraderJoe is the largest DEX on 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 from lending platforms in Ethereum. When people want to invest in DEX on Avalanche people think of TraderJoe.

TraderJoe is the leader of DEX on Avalanche. There is a tendency that if Avalanche’s DeFi grows, TraderJoe will capture most of economic value from the growth of DeFi on Avalanche.

3. TraderJoe pays a portion of its revenue to users.

JOE token is a governance token that allow users to vote on proposals.

0.05% of all trades are paid to sJOE staking pool.  A portion of fee is deducted from every swap and use for buying a stablecoin which finally will be distributed to all sJoe stakers.

Currently sJoe pool is 1.6% 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 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 $1,497,792,846

Curve TVL is $2,333,000,000

CRV market cap is 64% of Curve’s total value locked.

CAKE fully diluted market cap is $936,235,949.

PancakeSwap TVL is $1,370,000,000.

CAKE market cap is 68% of PancakeSwap’s total value locked.

JOE fully diluted market cap is $143,002,711.

TraderJoe TVL is $82.2 million  

JOE market cap is 58% of TraderJoe’s total value locked.

From the calculation JOE is a little more expensive than CRV and CAKE. However, due to JOE’s smaller TVL, it is easier to drive up the price of JOE than CRV or CAKE.

Learn more about TraderJoe here.