DEFI market - at a crossroads: bubble popped or cooldown?
The DEFI market is having a slowdown right now, so I decided to chart it via this aggregate chart.
The extremely sharp sell-off in early September has all the hallmarks of a bubble-pop - remarkable how savage and immediate the sell-off was across these assets.
It seems to be stabilising and trying to find some footing now, but this is all too common in bear markets - a sell-off, attempt to find support, and then further sell-off.
What I'd want to see is this support area to hold and then a slow climb upwards in November, as the crypto market as a whole hopefully picks up after the U.S. election. There are still plenty of good projects in DeFi (Kyber, NEO, CORE all spring to mind) but this may not be enough.
The market is very heavily diluted with scams and it really reminds me (and all other crusty boomer traders) of the ICO mania of 2017. My hope is that the better DeFi projects can somehow break away from the scams and forge an independent identity, leaving the scams as a separate and dying market. I do see real value in DeFi + DEXs as a concept.
Uniswap v3 making it easier to filter out scams, and improving user interface (even adding stops) may help to make this a reality. I'll be monitoring this over the next 6 weeks to see how we get on.
The extremely sharp sell-off in early September has all the hallmarks of a bubble-pop - remarkable how savage and immediate the sell-off was across these assets.
It seems to be stabilising and trying to find some footing now, but this is all too common in bear markets - a sell-off, attempt to find support, and then further sell-off.
What I'd want to see is this support area to hold and then a slow climb upwards in November, as the crypto market as a whole hopefully picks up after the U.S. election. There are still plenty of good projects in DeFi (Kyber, NEO, CORE all spring to mind) but this may not be enough.
The market is very heavily diluted with scams and it really reminds me (and all other crusty boomer traders) of the ICO mania of 2017. My hope is that the better DeFi projects can somehow break away from the scams and forge an independent identity, leaving the scams as a separate and dying market. I do see real value in DeFi + DEXs as a concept.
Uniswap v3 making it easier to filter out scams, and improving user interface (even adding stops) may help to make this a reality. I'll be monitoring this over the next 6 weeks to see how we get on.
Comment:
Down we go again