5 Reasons to Be Bullish on $FARM in Q3/Q4 2021
One of the projects that continues to innovate regardless of the overall market conditions is Harvest Finance.
The team has continuously overcome hurdles time and time again and is still striving to improve its product.
Here are five of the main reasons why you should remain bullish on $FARM.
1. Ditching Meme-Style, Bringing a Pro Look
Let’s be honest, memes were great for bootstrapping new DeFi products during the DeFi summer in 2020. It seemed like there were new protocols styled with different memes popping up every day.
At the time, memes were the easiest way to get the degens attention, and every project took advantage of this to attract investment into the protocol.
Harvest Finance was undoubtedly one of these projects that used memes to generate attention. You only have to look at their homepage to realize this;
Source; https://harvest.finance/
And if you take a look at their dashboard, it is also designed in the ‘cartoonish’ meme styling;
Source; https://harvest.finance/
This certainly did help to get Harvest Finance off of the ground, but professional investors would take one look at this and head elsewhere.
Considering that Harvest Finance is already established in the yield farming industry, it is time to redesign and become more approachable to professional investors.
The team is currently creating a new interface that sticks to their identity and makes them look a lot more professional. They have already released some mockup designs, and they look extremely clean;
The fact that the team is aware that they need to be a little more professional speaks volumes to their long-term vision and is a great reason to remain bullish on Harvest Finance.
2. Coinbase custody
In May 2021, Harvest Finance was added to the list of coins that could be securely stored with Coinbase Custody. Hell of a surprise.
This integration allows institutions and users to easily store their Harvest Finance $FARM tokens in the Coinbase Custody wallets. The service enables its clients to safely store their funds in a secure, institutional-grade offline storage solution — the same service that the Coinbase exchange has been using since 2021.
Coinbase Custody is NYDFS-regulated and is insured for $225 million through a syndicate of A XV/A+ rated insurers such as Lloyd’s of London.
As mentioned, the solution is primarily geared toward institutional investors as it has a minimum balance requirement of $500,000 with a 0.05% performance fee.
3. P/E Ratio Shows INSANE Undervaluation
The price-to-earnings ratio (P/E) for Harvest Finance shows an insane level of undervaluation — especially when compared with more prominent protocols;
The P/E ratio is a traditional finance method for valuing a company by measuring its current price to its per-share earnings (EPS).
Essentially, it allows you to compare a company’s stock price relative to the earnings it generates. In the stock market, analysts can also use it as a metric to compare potential companies against each other.
Harvest Finance is a DeFi Yield generating protocol, and farmers on the platform earn through their farming strategies. This is why we can create a P/E ratio for protocols such as Harvest Finance.
Typically, the higher the ratio, the more expensive the stock is relative to the earnings, so lower P/E ratios are better investments to make.
Looking at the P/E ratios above, we can see that $FARM outperforms all of the DeFi heavyweights, including $UNI, $AAVE, and $COMP. These heavyweights already have a market cap in the billions, with Harvest Finance currently sitting underneath $50 million. This shows that Harvest Finance is INSANELY undervalued right now.
4. It’s Always Best To Invest When Nobody Cares
You don’t want to be investing when the market is booming, and the price is high. Sure, the FOMO kicks in, and it feels like a good time to buy, but it really isn’t.
The best time to invest is when the market is down, and it seems like nobody cares. Right now, it certainly seems that nobody cares about $FARM as it is trading near the lowest level it has ever seen;
If this were just a meme project with no real use case, this would be a terrible time to invest. However, Harvest Finance remains a solid project and continues to improve month on month. Although this is not investment advice, it is likely one of the best times to invest to earn the highest returns possible when the market picks up again.
If we take a look at the Market Value to Realized Value (MVRV) metric on Santiment, it shows that all holders are pretty much in the red;
Baron Rothschild, the head of the Rothschild banking dynasty has a very famous quote that rings true here;
“the time to buy is when there’s blood in the streets.”
The blood is certainly spilling for the entire industry, and $FARM is no exception. It has provided an opportunity to start slowly investing back into the solid projects, and it is probably wise to start loading up over the coming weeks.
Another metric to show that nobody is really caring about $FARM right now is the Daily Active Addresses (DAA) metric;
It shows that the interest in $FARM has been consistently dropping and is now at the lowest levels for the year.
Nobody cares right now. Once the DAA metric starts to rise, it might already be too late to get in at an optimal price. It is best to do your research now and take advantage of the opportunity while the blood remains in the streets.
5. Hard Work For Every Penny of TVL
“It’s not much, but it’s honest work.”
That is the motto for DeFi Farming Protocols, and it can not be much more accurate for Harvest Finance. The team does put in the hard work for every penny of Total Value Locked (TVL) deposited into the protocol.
Harvest Finance seems to always be the first movers in the industry by constantly innovating to release new farming strategies.
When the entire Binance Smart Chain ecosystem started to thrive, Harvest Finance quickly started implementing BSC strategies into its protocol. They launched their strategy toward the end of March 2021 and delivered some respectable APYs;
The great thing is that they don’t seem to slow down.
The pace of shipping new strategies is genuinely outstanding. Recently, Uniswap upgraded its protocol to Uniswap V3, and the team at Harvest Finance shifted quickly into development mode and implemented some new Uniswap V3 farming strategies in June 2021;
Within days, the TVL locked into these new strategies closed in on $10 million;
As more protocols start to thrive, there will be more yield farming opportunities available for farmers, and we can be certain that Harvest Finance will be quick to implement them as they come.
Conclusion
All in all, Harvest Finance continues to provide solid reasons to remain bullish on $FARM in the long term. Even when the overall market condition is bearish, the team continues to innovate to improve their product offering.
