1 DEFI stopped falling, can you buy it?
Recently, DeFi has fallen sharply, and a lot of its highs have fallen by 90%. Just like Bitcoin in the past, the “crash scam” has also come. The decline has stopped in the past few days. Should it be reversed to rise, or should it continue to fall after a break?
Of course, the mainstream currencies in DeFi have not fallen so badly, that is, a drop of about 50%, which is not too much. There is also a 99.9% drop in high purity in the blockchain field. Bitcoin fell 16% and Ethereum fell 32%.
In the long run, Bitcoin has been well-tested for ten years, and large funds have begun to reserve. The Ethereum ecosystem is prosperous, unique, and the foundation of DeFi. These two real estate projects have long-term stable returns.
The mainstream on DeFi is exchanges and banks, which are also just in demand in the traditional financial field, and are at the top of the food chain. LINK oracle is the infrastructure of DeFi and can reflect the overall trend of DeFi.
The conclusion is: DeFi fundamentals are good, the decline has also been supported by technology, and the price ratio reflects that funds are still focusing on. Even if it still falls, the space is limited. Long-term price investment is not a big problem.
2 DeFi fundamentals
Fundamental aspects: DeFi locked up more than tens of billions of dollars, with more than 500,000 users. One of the main applications of the exchange Uniswap has exceeded the traditional old Coinbase. The number of infrastructure LINK addresses has also been increasing.
The fundamentals of DeFi have not changed, and value investment is not a big problem. One way to do transactions with less risk is to be a leader and talk about it: “Investment must follow the big forces.” Especially for leeks, which have limited investigation and analysis capabilities.
The top 10 currencies of DeFi account for 80% of the market value. The top ten covers not only the market value, but also the main forms of finance. Exchanges are equivalent to the securities market, and deposits and loans are equivalent to banks, occupying 5 seats.
Synthetic assets, real-world stocks, etc. are mirrored in the blockchain as transaction targets, occupying two seats. The remaining REN cross-chain privacy is suitable for dark web transactions, where YFI has high interest rates and where to deposit, expand transactions and optimize deposits and loans.
The oracle is the basis of DeFi, and price data is provided to DeFis. Even Uniswap, which relies on function for market making, has also upgraded its support. The characteristics of infrastructure are needed by everyone and account for the highest market value.
The DeFi leaders are basically here, the leader of the oracle, the leader of the exchange, the leader of the bank, the leader of cross-chain, and the leader of aggregate trading. NXM, the insurance leader ranked 11th, will not consider it this time, and the real world insurance is also weaker.
3 DeFi price comparison
The price comparison relationship mainly depends on the inflow of funds, which has a certain degree of stability, and there will be a certain degree of regression after deviation. Starting from August 1st, we will analyze mainstream DeFi currencies.
Most DeFi mainstream currencies have good correlations, after all, they are in the same sector. The white part is basically YFI and REN, these two currencies have attracted the attention of funds and have gone out of the independent market.
Common points: YFI is optimized for deposits and loans, and REN is optimized for privacy. I don’t know whether optimization based on a bunch of projects is the cause of independent market. Perhaps it is a variant of the logic of selling shovel.
Judging from the largest decline data, it is basically around 50%. Relatively speaking, YFI, which rose the most, fell the most, but REN, which rose the second most, fell the most.
Judging from the results of the recent rebound, most products have returned to the August point. YFI and REN have doubled the current increase compared to August, and these two items have the largest increase.
Judging from the price index, YFI was far ahead and the most eye-catching. Although REN started fast, it had the largest decline, and it ended up with everyone. After all, YFI, who helps make more money, is more valuable than REN, who does more illicit work. Black birth is difficult to grow.
4 DeFi technical analysis
LINK represents the big funds in DeFi, and YFI represents the strongest combat power in DeFi at this stage. The charts of other currencies are highly correlated with LINK. A basket for eggs is actually enough. After all, they are all a basket.
The pursuit of stability LINK is right. The risk appetite is YFI, and it depends on whether the clubhouse or the construction site. Of course, I still advocate spare money investment. The technology is not good, let alone leverage. Off-market borrowing is better, at least it will not be targeted.
LINK K line analysis
Judging from the LINK daily K-line: this round of decline was supported by the central and half-year moving average, and it rebounded. The rebound reached the central 2 formed by the decline, indicating that the strength of the rebound is OK and it is expected to continue.
Future market: There is a high probability that it will consolidate for a period of time near the center 2, and then choose the direction. The K line is generally to find the direction of least resistance, and it is not too much to hold the plate up. There is not much space down.
Operation: After all, it is a value currency with good fundamentals. Downward, there is a large level of central support. Although the direct entry is somewhat chasing high, the probability of loss in the long run is unlikely. Those pursuing high returns can wait for the callback low to enter.
Since other currencies do not have independent market quotations and LINK operations are consistent, there may be performances in UNI’s currency listing, and you can pay more attention to it. After all, the leading platform currency of decentralized exchanges.
YFI K-line analysis
Judging from the YFI 4-hour (Binance time period, so the cycle is small) K line: this round of decline has also been supported by the center and rebounded, and the rebound is generally only to the center of the second period of decline.
Future market: There is a high probability that there will be a decline. After all, the previous increase was too large and too fast. Fundamentally, it depends on the face of people. After all, the income of liquid mining is now normal. Even if it becomes adult, the number is small.
Operation: For long-term holding, deposits and loans will not always have such high profit margins, and there is no need to take risks. In the short term, it is a popular currency after all, and the concept is not bad. It is okay to wait for another wave to rebound. (Author: FORESTRY AND Editor: Wu says Block Chaining)
