JOE / US Dollar (JOEUSDT) Token Analysis 11/09/2023Fundamental Analysis:
JOE (JOE) serves as the native token for Trader Joe, a decentralized exchange (DEX) operating on the Avalanche (AVAX) blockchain. Trader Joe offers a range of DeFi services, including swapping, staking, and yield farming. Since its launch in June 2021, the exchange has experienced rapid growth, attracting over $4 billion in total value locked (TVL).
Trader Joe places a strong emphasis on a community-first approach and values innovation, speed, and security. The platform aims to provide a comprehensive DeFi experience, offering various services while prioritizing the safety of its users' assets. To achieve these goals, Trader Joe has laid out an ambitious roadmap for 2021, focusing on token-holder growth. This roadmap includes plans for enhanced staking, the addition of non-fungible-token (NFT) exchange listings, collateralization of the JOE token, and the introduction of leveraged trading features.
Trader Joe offers a full suite of features akin to a modern decentralized exchange (DEX) and combines this with a user-friendly interface, ensuring swift and cost-effective transactions. Users have the option to participate in yield farms, providing liquidity and earning JOE (JOE) tokens as rewards, which can subsequently be staked and used for voting in governance proposals.
In addition to its DEX functionality, Trader Joe operates a lending protocol known as Banker Joe, built upon the Compound (COMP) protocol. This non-custodial lending platform enables users to both borrow and lend funds. Furthermore, users can open leveraged positions, utilizing either their provided liquidity or borrowed funds.
Trader Joe is committed to enhancing the utility and adoption of the JOE token. To achieve this, the project is working on several key additions, aiming to establish itself as the primary DeFi platform within the Avalanche ecosystem. These forthcoming features include the ability to use JOE as collateral for borrowing, the introduction of limit orders, and the inclusion of options and futures trading on the platform.
Thanks to its rapid pace of innovation and distinctive comic book-inspired branding, Trader Joe has attracted substantial support from prominent figures within the DeFi community. Notable backers include Stani Kulechov, the founder of AAVE (AAVE), and Darren Lau, among others.
Trader Joe operates on the Avalanche (AVAX) blockchain, which features a distinctive proprietary consensus mechanism. In this mechanism, all nodes engage in processing and validating transactions by utilizing a directed acyclic graph (DAG) protocol.
At present, the management of the project's treasury is entrusted to its developers, Cryptofish and 0xMurloc. However, the Trader Joe community has plans to establish a multi-signature governance mechanism in the future. In the interim, token holders have the ability to vote on the development of the protocol through the Snapshot platform.
Trader Joe was founded by two pseudonymous developers known as Cryptofish and 0xMurloc.
Cryptofish is a self-described full-stack and smart contract engineer who played an early role in various Avalanche projects, including Snowball and Sherpa Cash. Prior to this, Cryptofish worked at Google and holds a Master's degree in Computer Science from a U.S. university.
On the other hand, 0xMurloc is a full-stack developer with a background in launching several startups and serving as a Senior Product Lead at Grab.
In addition to Cryptofish and 0xMurloc, the Trader Joe team comprises over a dozen other pseudonymous contributors who work across various areas, including software development, marketing, and community management.
The total supply of JOE (JOE) amounts to 500 million tokens. Notably, JOE was introduced to the market without any pre-sale, private sale, or pre-listing allocations.
The distribution of JOE tokens is structured as follows:
50% allocated to liquidity providers.
20% allocated to the project's treasury.
20% designated for the team, subject to a three-month cliff period.
10% reserved for future investors, also subject to a three-month cliff period.
JOE tokens are being emitted over a 30-month period, and individuals staking JOE can earn 0.05% of all trades conducted on the platform. Furthermore, JOE tokens are designed to share a portion of the fees generated from lending interest and liquidations with the staking pool.
It's important to note that the emission rates of JOE are programmed to progressively decrease over time and are set to conclude at the start of January 2024.
Technical Analysis:
We have applied Fibonacci retracement tools, extending from $0 to its all-time high (ATH) of $2.79. Within this analysis, we have identified potential support and resistance areas on the chart based on the retracement levels.
In addition to the retracement levels, we have utilized Fibonacci projection tools to delineate additional potential support areas below the previous all-time low price. This projection is based on the most recent market cycle. Consequently, we have established two potential support levels at $0.13 and $0.07.
Furthermore, we have outlined three potential price targets using the Fibonacci retracement levels from the ATH cycle. These targets are anticipated within the next few weeks to months and are as follows:
First Target Price (1 TP): $0.6
Second Target Price (2 TP): $1.065
Third Target Price (3 TP): $1.4
These levels serve as key reference points for our analysis, guiding our expectations for future price movements.
Sentiment Analysis:
Considering the possibility of depreciation in the total market capitalization of cryptocurrencies and the price of Bitcoin (BTC) in the upcoming months, it is reasonable to consider employing a Dollar Cost Averaging (DCA) strategy for long positions at the specified support levels.
