Native DeFi tokens are UNDER-valued
The crypto market is currently enveloped in a frenzied bullish momentum this week, and several altcoins are amassing enormous value with prices flying off the charts. If you were blindsided and caught off guard by this sudden surge in the market -- you're not alone. For the people who failed to push all their chips to the middle of table when this began two days ago, hold tight. Don't let FOMO get the better of you. It can be inconspicuous and insidious. The single most difficult thing intelligent traders must do is fight the FOMO and remain patient for the inevitable correction and appropriate entry. In fact, some people may go so far as calling it a sin to fear you're not getting as "rich":
Sit tight, stick to the fundamentals, keep studying and learn from all your experiences good or bad.
While Ethereum is catapulting to all time highs ($1,600) and Cardano continues it's trek towards ($1.00), the DeFi space is quietly seeing an explosion in liquidity and trading volume. Uniswap is currently hovering around $20.00, a cool $6b in marketcap, and over $1b in 24 hr. trading volume. However, the amount of crypto capital required to invest and the exorbitant gas fees makes it irrational at this point for small-time investors to attain a worthwhile ROI. The real value, in my opinion, is in the the actual native tokens of these Defi projects.
Sushiswap is clearly Undervalued
Messari's Ryan Williams and Mira Christanto published an article "Valuing SushiSwap - The Grassroots Decentralized Exchange" - an incredibly thorough and meticulous valuation of the controversial DeFi behemoth. Utilizing the Price to Sales (P/S) and Dividend Yield valuation methods as a model, and we don't need to get too deep into the technicals, they arrived at a median price of $15.9/sushi. (BTW I recommend Messari as a crypto analysis tool for all serious investors, and I don't make a dime off referring them)
Now mind you, that piece by Messari was written on Jan. 28 - Sushiswap was sitting at $7.46. That's more than a 100% jump in price within the span of a WEEK!
That's 7 days in case you weren't aware. With a marketcap sitting at just a hair under $2B and a truly staggering 24 hr. volume of over $1B, Sushi Swap is essentially Uniswap with less liquidity. We all understand the economics of the less liquidity sitting in a liquidity pool, the more fees that go into YOUR pocket. In other words, the sky's the limit for Sushi as long as they continue to innovate and update - like they proved recently with the launch of their new website.
SushiSwap classic interface
SushiSwap shiny new UI design
Just to be clear, I am in no way seeking to diminish the absolutely insane gains investors are seeing in both Uni and Sushi's liquidity pools. Not everyone has 5-6 thousand dollars laying around to toss into a DeFi exchange though, unfortunately. Consequently, I see us little guys cashing in long-term with a portfolio that includes these native DeFi token assets.
Back in January, I bought .2 of an Aave token for ~$30-$40. It is now worth well north of $100 and has merely been sitting in my wallet for a month. These native governance tokens have just as much if not MORE value than running the DeFi circuit chasing your .3% fees and suffering wild volatility from the pool jumpers. Take a chill-pill, invest in DeFi projects that you believe in, and watch the money pile up.
Mark my words: Do not sleep on DeFi native/governance tokens as a store of value. You will regret it.