Here are my thoughts on where we are in the state of the DeFi market from an "inside perspective" /cDAhpc9tVN With recent DeFi token price run-ups, people have been crying "bubble!". Those that have follow the space know how hard it is to keep up with the new projects even when researching on a full time basis.” **DeFi development** It’s hitting an inflection point. And I didn’t even get to greater retail… I will write a separate thread about China investor psychology & market structure because that’s its own beast. “Long story short, smart money is starting to trickle in, with a lot of peripheral money potentially snowballing in after. The thread suggests that DeFi is likely at the start of a parabolic growth cycle due to a variety of market trends: Many think that this space’s long-term growth trends, though.Īndrew Kang, CEO of Mechanism Capital, shared the below Twitter thread in July. Others have specifically commented that Ethereum’s gas fees recently spiking to all-time highs, where it costs over $100 to do simple DeFi interactions, makes this space’s growth naturally limited. While traction for DeFi (AMM + deposits/yield) has grown tremendously over the past few months, DeFi is difficult to use, the ability to lose funds scares most new users away. (experience tells me that it takes 6m-12m to close these conservatives.”ĭeFi thread – Why I am calling the top (At least for now) No family offices/HNWI that I know of have deployed new funds into space. Having said that, most of DeFi participants are existing crypto users. “While traction for DeFi (AMM + deposits/yield) has grown tremendously over the past few months, DeFi is difficult to use, the ability to lose funds scares most new users away… Ran out of new money. Many joked that the ETH rally in response to this development was due to the “Hayden Effect,” referencing Uniswap’s founder. The coin was benefiting from the launch of Uniswap’s UNI token, which can be mined using ETH, thereby making it an attractive asset to own. ETH surged from the $360 lows on Wednesday to a local high just above $390. Analysts think that this weakness in the altcoin market may pertain toĮthereum enjoyed a strong rally on Thursday despite some weakness in the price of Bitcoin and legacy markets.DeFi coins, especially, have suffered, posting losses of 5-15% across the board.Despite the rally in the price of Ethereum, altcoins in the industry are dropping.This rally came in spite of Bitcoin topping just over $11,000, responding to weakness in legacy markets like the S&P 500.ETH surged around 10% from the time of Uniswap’s announcement to the daily highs.Ethereum pressed higher on Thursday after Uniswap released the UNI token to the world.
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