Cryptomustar
Wednesday, May 18, 2022
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO
No Result
View All Result
Cryptomustar
No Result
View All Result
Home Cryptocurrency

Even after parabolic rally, top crypto VC thinks Ethereum DeFi isn’t overvalued

by admin
September 20, 2020
in Cryptocurrency
0
Even after parabolic rally, top crypto VC thinks Ethereum DeFi isn’t overvalued
0
SHARES
7
VIEWS
Share on FacebookShare on Twitter


It’s clear excess and euphoria is starting to seep into Ethereum’s DeFi space. Uniswap nearly reached a $1 billion circulating market capitalization just two days after its launch, a food coin called Pickle surged 1,000 percent in a day, and Yearn.finance (YFI) has gained over 1,000,000 percent since its July launch, to name just a few trends.

To put this into more broad and absolute terms, there is now $10 billion locked in mainstream DeFi contracts according to DeFi Pulse. At the start of the year, this single metric was extremely close to $500 million.

RELATED POSTS

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

Even after all this, there may be reasons to believe that decentralized finance is not yet overvalued on a longer-term time frame.

Is Ethereum’s DeFi space really overvalued yet? A top investor is not too sure it is

After DeFi coins doubled and tripled within the span of a few weeks in June, Mechanism Capital founder Andrew Kang came out with a Twitter thread outlining his thoughts on DeFi’s trend of growth.

As this outlet covered at the time, he was not then convinced that this crypto market segment had reached a top, going as far as to say that it was in the early stages of a parabolic growth cycle.

Kang was proven correct in the two months that followed, as coins in the space continued to double and triple and rally higher on even bigger multiples.

He is now back again, having been proved correct, and he’s saying that there is still space for DeFi to grow.

On Sep. 19, he wrote:

“TVL in DeFi is up ~20x since 2019 and DeFi market cap is up a similar amount. I don’t think price has seriously outpaced fundamentals yet. Seems low EV to cashout for a short trade and potentially miss out on parabolic growth.”

TVL in DeFi is up ~20x since 2019 and DeFi market cap is up a similar amount

I don’t think price has seriously outpaced fundamentals yet

Seems low EV to cashout for a short trade and potentially miss out on parabolic growth pic.twitter.com/xWo2oCXZg3

— Andrew Kang (@Rewkang) September 19, 2020

Kang added that realistically, it may only take $50 million worth of new capital to drive this space up by 10% or even more.

With much capital entering the DeFi space as institutional investors get excited, growth may continue in the medium to long term.

Certain factors could drive this market lower

While DeFi may not be overvalued, there may be some trends that can trigger a further short-term correction after the already 10-30 percent drop that has transpired in this segment of the crypto market.

As reported by CryptoSlate, crypto analyst “Theta Seek” commented that there are three crucial reasons why DeFi’s growth may be reaching a plateau for the time being. These include but are not limited to:

  • Risk of funds caused by poor user experiences and tools
  • A slowdown in the value of capital and interest entering the space
  • Regulatory pressure as regulators eye the vast amounts of capital sloshing around in DeFi, along with the hacks.

It may just be that investors are sitting on the sidelines and are not advancing into this space due to the aforementioned risks and issues such as poor user experiences and potential regulatory pressure.

Like what you see? Subscribe for daily updates.





Source link

Tags: CryptoDeFiEthereumIsntovervaluedparabolicrallyThinksTop
ShareTweetShare

Related Posts

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

AQX Launches its New DeFi Platform in Open Beta on 18th May 2022

by admin
May 18, 2022
0

There was an increase in volatility in crypto markets where most cryptocurrencies underwent double-digit percentage declines recently. However, like many...

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

Nasdaq decline equates to Dot-Com crash. How does it compare to crypto?

by admin
May 17, 2022
0

Analysis shows that Nasdaq has lost over $7 trillion in value amid the market sell-off in 2022.Quantum Economics founder...

GameFi Slides on Macro Trends but Individual Projects Shine | April Monthly Report

GameFi Slides on Macro Trends but Individual Projects Shine | April Monthly Report

by admin
May 17, 2022
0

In April, GameFi game projects grew from 1,406 to 1,479, a monthly increase of 5.2%, with growth concentrated in...

Another algorithmic stablecoin, DEI, loses peg

Another algorithmic stablecoin, DEI, loses peg

by admin
May 17, 2022
0

Another algorithmic stablecoin from Deus Finance, DEI, fell to as low as 54 cents on Monday, continuing what has...

Terra ecosystem to vote on a fork to create Luna Classic and Luna Core

Terra ecosystem to vote on a fork to create Luna Classic and Luna Core

by admin
May 17, 2022
0

Luna Foundation Guard CEO, Do Kwon, has released a new proposal entitled “Terra Ecosystem Revival Plan 2.” In it,...

POPULAR NEWS

4 Cryptocurrency that Blow Bitcoin Out of the Water

4 Cryptocurrency that Blow Bitcoin Out of the Water

September 25, 2020
Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

Memoriae – Next Generation of Decentralized Cloud Storage Based on Blockchain

July 1, 2021
Apollo CBDC: The CBDC Platform that can Power Economies

Apollo CBDC: The CBDC Platform that can Power Economies

October 6, 2020
Stratus: The Most Feature Rich Social Media Network

Stratus: The Most Feature Rich Social Media Network

September 9, 2020
Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

Binance Coin (BNB) erupts above $270 as the whole Smart Chain ecosystem soars

February 19, 2021

EDITOR'S PICK

Silicon Valley VCs and BNY Mellon announce $170 million investment in Fireblocks for Bitcoin custody

Silicon Valley VCs and BNY Mellon announce $170 million investment in Fireblocks for Bitcoin custody

March 19, 2021
First Mover Asia: Why Japan, China and Other Regional Powers Are Still Putting Their Faith in T-Bills, Gold; Cryptos Climb Higher

First Mover Asia: Why Japan, China and Other Regional Powers Are Still Putting Their Faith in T-Bills, Gold; Cryptos Climb Higher

March 29, 2022

Paxos Standard

October 16, 2021
Over 13% of Bitcoin Crime Proceeds Laundered Through ‘Privacy Wallets’: Elliptic

Over 13% of Bitcoin Crime Proceeds Laundered Through ‘Privacy Wallets’: Elliptic

December 9, 2020

About

We publish a comprehensive news feed covering all news relevant to the crypto user, covering main industry news, politics and regulation as well as consumer-level “news you can use” (practical stuff), including handy DIY tips, links to useful tools, unbiased reviews and opinions revolving around cryptocurrency. Simple logic and real-world examples are preferred before technical jargon and personal rants.

Follow us

Categories

  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Ethereum
  • Litecoin
  • Market
  • Press Release
  • Regulation
  • Uncategorized

Recent Posts

  • Pyramid Pad Announces Upcoming Token Airdrop
  • French central banker says the G7 plans to discuss crypto regulations
  • LetsExchange Acquires Crypto Aggregator Alligat0r…
  • ElonCoke (ELNCO) Announces Listing on PancakeSwap and Upcoming P2E Game
  • About Us
  • Privacy Policy
  • Contact Us

© 2020 cryptomustar.com

No Result
View All Result
  • Home
  • Altcoin
  • Bitcoin
  • Ethereum
  • Litecoin
  • Cryptocurrency
  • Blockchain
  • Regulation
  • Market
  • Prices
  • ICO

© 2020 cryptomustar.com

  • YAM v2YAM v2(YAMV2)$4.70-1.41%
  • yfBetayfBeta(YFBETA)$4.27-0.10%
  • IDLEIDLE(IDLE)$1.44-12.39%
  • WPP TokenWPP Token(WPP)$0.006826-3.49%
  • DSLA ProtocolDSLA Protocol(DSLA)$0.003681-6.85%
  • lympoLympo(LYM)$0.004392-4.43%
  • Werewolf CoinWerewolf Coin(WWC)$0.098082-2.58%
  • PolkaBridgePolkaBridge(PBR)$0.439784-6.92%
  • Dev ProtocolDev Protocol(DEV)$1.76-16.14%
  • EvidenZEvidenZ(BCDT)$0.122949-3.85%