More Than Just Hype
It was not too long ago that DeFi projects were enjoying an exclusive bull market. Pretty much any project that was labelled "DeFi" automatically received an invitation to a party of gains. Some pumped, only to collapse completely but even those that did remain have been hit hard by what many would refer to as a bubble scenario. Looking back on some of my posts, readers will find that I often referred to a second wave in DeFi. I have not really bought into the "bubble" narrative when it comes to DeFi. In my mind, a bubble will bring on an extended period of time where prices are suppressed after an extreme collapse. A retracement that lasts months is not really a bubble, although the price action does often display a severity often seen in a bubble.
Although prices have fallen significantly from recent highs, DeFi adoption has been steadily increasing and this is a far more important metric than price. Adoption and use front run price and in essence are often the leaders that signal other metrics to follow suit. Looking at the DeFi TVL in the graph above, it becomes quite clear that DeFi is being utilized and is far too significant a sector to be stifled at these early stages.
In my opinion, it is just a matter of time before prices begin to climb significantly. Already, we have seen certain DeFi projects starting to move higher as the general sentiment in Crypto becomes more and more bullish. Bitcoin is bordering on 16K and will most likely go on to 17K or even 18K before experiencing an infamous bull market dump! Fortunately these dumps are bought up very fast and if anything, create amazing entry points for speedy gains.
Uniswap Maintains TVL Dominance
Total value locked in Uniswap is now over $3 billion and is $1 billion ahead of Maker, which is currently sitting at the number 2 spot. I remember how in the height of the DeFi craze, people were amazed at reaching $9 billion TVL for the entire DeFi sector and now we are approaching $14 billion. Uniswap, Maker, WBTC, Compound and Aave all have in excess of $1 billion in TVL!
As the Crypto market becomes increasingly bullish and DeFi adoption continues to increase, expect to see the DeFi sector increase in market cap. The adoption is growing and many projects such as Kyber network are starting to shake off the dust from their recent collapse. Many DeFi projects are also starting to form double bottom patterns, which are statistically very bullish.
In the chart above, it seems as if Kyber is desperately trying to break the recent downtrend and begin moving north again! Excellent DeFi projects are currently offering significant bargains in my opinion and are moments away from moving higher.
Please remember that these are my own opinions and not investment advice. Do your own research and enjoy the process of comprising your own unique portfolio. This is very rewarding when your calls become reality!