Some months ago I wrote an article highlighting the idea that the DeFi pump and dump we had just experienced was by no means a fad but just the first leg of a much bigger move. My prediction was that there would be a second wave of DeFi in which projects with very real and specific use cases would rise significantly. Not only significant use cases but multiple use cases, unlike in the past, where any project tagging itself with the DeFi tag received much love and pumpage.
The recent surge of UNI serves to confirm the trend of DeFi, as in many ways UNI is actually at the heart of DeFi providing liquidity and translation within the decentralized tokenized economy. In a very short amount of time UNI has surged from approximately $3 to well over $20 and does not seem to be allowing any shrewd investors the opportunity of coming in on a dip. Looking at DeFi Pulse, it becomes clear that this market is growing on a continuous basis despite previously suppressed prices, which I discussed in this article from November 2020.
The recent rumblings and price action within the DeFi space can be interpreted as an indicator to review one's DeFi holdings. I exposed myself to a number of small cap and medium cap DeFi projects about a year ago. I will be reviewing these in light of the current trends and my own interpretations of where I believe the market is heading. Based on performance, use case and long-term outlook, I will be adding to these positions. My initial move is always conservative, as I am usually looking at very small, volatile and new projects.
I am also looking at adding a couple of new projects but I will really have to be convinced. My speculation for the future has already been initiated and I don't want to be taking too many new risks at this stage of the game. Testing the waters needs to be done early on, this is the the time to compound good decisions as the market rewards them.
I view front running the market as the most key and valuable approach to investing. Trading can be a little different, as you cannot be too early because then you are floating in a sea of volatility that can be more detrimental than helpful.
A Call To Action
If you have a bunch of DeFi coins and tokens that you managed to pick up in the previous run, I would suggest revisiting them in order to evaluate which ones still have a fighting chance. You may also be surprised to find a couple of dark horses that have surprised both you and the market.
Things are beginning to hot up in the Crypto space and the window of opportunity is quickly closing! Ensure that you don't get left out of this massive run and put in the time now, while you still can!
This is by no means investment advice, merely an opinion based on my own views and experiences.