Read on Twitter
Three reasons why this DeFi lead bull market will be more sustainable than the ICO lead bull market:
1/ Unlike ICO where most projects raised tens of millions of pure idea and empty promises, most DeFi protocols right now have product market fit and increasing tractions/usage.
1/ Unlike ICO where most projects raised tens of millions of pure idea and empty promises, most DeFi protocols right now have product market fit and increasing tractions/usage.
Yet they are still trading at lower valuation than some of the ghost layer 1 chain like Litecoin, Cardano, Stella now, even lower when compare to their peak valuation of $10bn+.
The top DeFi crypto will continue to go up and replace these dead layer 1 chain in top 10-20 crypto.
The top DeFi crypto will continue to go up and replace these dead layer 1 chain in top 10-20 crypto.
2/ Most active crypto investment funds now are the survivor of 2018 bear market and they are well aware of the danger of investing at inflated valuation.
On private market side, we usually see less than $10m FDV for unlaunched and $30m-$50m for launched DeFi protocols.
On private market side, we usually see less than $10m FDV for unlaunched and $30m-$50m for launched DeFi protocols.
3/ Unlike ICO where the tens of million raised usually flow out from the crypto ecosystem to founders' yacht, operating expenses etc. Most of the gains made on DeFi right now stays within the crypto ecosystem.
There is minimal value leakage out now.
There is minimal value leakage out now.
Most successful DeFi investors I know still keep their gains within the ecosystem and investing in new promising DeFi protocols to help the space grow to another level.
All factors above lead me to conclude that this bull market is likely to be more sustainable than the prev one
All factors above lead me to conclude that this bull market is likely to be more sustainable than the prev one
