Even if there is a bubble in DeFi, it is a relatively small bubble in the encryption field.
Original title: “DeFi Bubble, NFT and Market Adjustment”
Author: Blue Fox Notes
Is DeFi a bubble? Yes, but who doesn’t?
If there is a bubble, the DeFi bubble is definitely not the biggest one!
As of the writing of Blue Fox Notes, according to Coingecko’s statistics, the market value of DeFi is approximately US$13.5 billion, the market value of XRP is approximately US$10.4 billion, and the total market value of the entire crypto market is US$341.8 billion.
- Compared with the overall encrypted market value, DeFi accounts for about 4%.
- Compared with the market value of XRP, XRP is equivalent to about 77% of DeFi.
- Among the top 20 projects by market capitalization, in terms of captured costs, only a handful of projects can rival DeFi projects.
The picture below is from the statistics of MESSARI:
In MESSARI’s statistics, the overall market value of DeFi is not even as high as XRP; in the crypto market, except for Bitcoin, DeFi is only 4%. This means that in the field of encryption, DeFi is actually very small, not even one-tenth of the market value. Compared to the entire encryption field, the DeFi bubble is relatively small.
Let’s take a look at the current fee capture situation in the crypto market:
As can be seen from the above figure, according to the seven-day average daily capture cost ranking, the top three are Ethereum, Uniswap, and BTC, and most of the top rankings are DEX in DeFi, such as Curve, Balancer, SushiSwap, etc. In addition to Ethereum and Bitcoin, the fees that DeFi projects can capture have far exceeded other protocols and projects.
Even if there is a bubble in DeFi, it is a relatively small bubble in the encryption field. If you want to go bubble, the first thing to go is not DeFi, but other things. Among the top 50 crypto projects by market value, how many projects have no ecology, no users, and no value capture? These items will be eliminated in a future round of substitution.
At the current stage, the DeFi project just calms down to build technology and products, especially the construction of layer 2, as well as the construction of cross-chain, and the construction of user experience. When these are completed, projects with millions of users or even projects with millions of users may appear in the future.
The NFT market is more than just MEME, crypto games, art collectibles
NFT has been developed since 2016. At that time, the encrypted games “Age of Chains” and “Rare Pepes” were all games related to NFT. The most significant NFT development in 2017 was the popularity of CryptoKitties. The NFT in Decentraland also began to receive the attention of early followers after 2018. The land, virtual buildings, and wearing items on it all have transaction value. Nowadays, in addition to games and digital art collections, NFT also extends to domains, sports and other fields.
According to NonFungible’s statistics, the total amount of NFT market transactions today exceeds 110 million U.S. dollars, and more than 4.8 million NFTs have been sold, with an average price of 23.36 U.S. dollars.
The development of DeFi has also brought NFT into a new field: the combination of NFT and DeFi. Now NFT-based lending has begun to appear, such as crypto cat-based lending.
The user mortgaged this crypto cat and loaned out 22 ETH assets. NFT sometimes has insufficient liquidity, and tokens such as ETH can be loaned by mortgage of NFT assets, which is also a good way to realize its liquidity.
A fund has spent more than $150,000 to buy these four cute Axies below. Is it a bit back to the time of 2017 CryptoKitties?
Speaking of NFT, people will focus on art collections, as well as various MEME and encrypted games, but NFT is far more than that. The biggest market for NFT in the future will be the NFTization of off-chain assets. In the future, various assets such as tickets and invoices will be NFTization, of course, there are many problems to be solved here, not a day or two. Today’s Meme, encrypted games, and art collections are the most likely places for NFT to break through, and the encrypted NFT market in the future may be even broader.
Since NFT is a non-homogeneous token, it has more personalized features, which is destined to be not the current main dish. It may be very eye-catching and will attract everyone’s attention, but people will have more large-scale participation. With a high threshold, its development will take a long time, and people need more patience.
There is no ups and downs in the market
There are ups and downs in any market. The crypto market has more ups and downs than other markets. On the way to the peak, the ups and downs follow. The crypto market is a demonstration of social practice of human nature and social psychology. The important thing is how to maintain the proper position in the process.
The above picture is the adjustment of the crypto market in March this year, which is only half a year ago.
What will happen in the future? The world is unpredictable, and no one has a crystal ball to predict the future. However, there will continue to be ups and downs in the future, and there may be black swans, but this is all part of the journey to the peak. DeFi will continue and complete its historical destiny.
Source link: mp.weixin.qq.com
