The last couple weeks in DeFi have been an absolute bloodbath.
— Ryan Watkins (@RyanWatkins_) September 22, 2020
But keep in mind bull markets never go up in a straight line.
In the 2017 ICO boom ETH pulled back 20%+ seven times before it peaked in January 2018.
So far in this bull market we’ve only experienced one.
1/ pic.twitter.com/EXqhmm2MkM
That Was Then, This Is DeFi
Gemini Co-Founder Cameron Winklevoss says not so fast. In a tweet, he points out the differences rather than the similarities between DeFi and ICOs. He notes that unlike many failed ICO projects, whose white papers were thrown together, DeFi has a real use case in which “billions of dollars are at work earning positive yield.” Nonetheless, it’s hard enough for institutional investors to get bitcoin past the compliance department. DeFi is going to be a harder sell for them, so DeFi — much like ICOs — remains a market dominated by retail investors for the time being.DeFi Hype
For all of its hype, you would think that the DeFi market segment is as big as bitcoin. But it’s not. According to Messari, the total DeFi sector is worth $6 billion, which falls below the total value of No. 4 cryptocurrency XRP. For even more perspective, Messari compares to the DeFi market to the broader crypto market excluding bitcoin, which still results in only a sliver of the total pie at 4%. Messari states,“In other words, DeFi hype is strong, but not strong enough to make a dent in broader crypto asset markets.”
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