Donald Trump winning the US election has ignited a bull run.
Every sector, from memes to L1s, is going bonkers, but there's one undervalued sector to which most people are not paying attention.
A Article on the
#DeFi sector and why it's primed for its biggest rally since 2020
➜ On 6th November, #crypto bros got what they dreamed of for many months.
➜ Donald Trump won the election, #BTC hit a new ATH, and alts started ripping.
➜ Since then, BTC is up nearly 15%, #ETH is up over 20%, while alts are up 50%-100%.
➜ Yet, my timeline is quite silent as there are so many people sidelined right now.
➜ In the past few days, I have started to pay more attention to the DeFi sector.
➜ This doesn't mean I'm bearish on memes, RWAs, etc.; this simply means the DeFi sector has to do a lot of catching up.
➜ Since 2020, the crypto market has not witnessed a major DeFi rally, but now this could be the time.
Let's start with 3 major reasons why DeFi shouldn't be ignored 👇
1) New Administration, More Clarity
➜ We all know Gary is a puppet of big banks, of which DeFi is the direct competitor.
➜ In the past few years, the SEC has gone after major DeFi projects, including Uniswap, which has resulted in sluggish price action.
➜ The SEC aims to have control over DeFi, which completely kills its purpose.
But now, this is going to change soon.
➜ As Trump has mentioned earlier, he will fire Gensler on Day 1 and will choose someone who's more crypto-friendly.
➜ This means there'll be more clarity around DeFi, securities law, and other things.
All this will lead to one thing: More liquidity and adoption.
Higher Adoption ➜ More Liquidity ➜ Higher Prices
2) Huge Developments
➜ Since 2020, DeFi TVL and developments have gone 10x while prices are down 80%-90%.
There are a few reasons behind it.
- Hacks and theft
- Bad UI and difficult to trade
- Limited products
But now, things are changing quickly.
▶️ In the past few years, several DeFi projects have launched that have stood the test of time.
▶️ They have several products similar to CEXes, good liquidity, and a CEX-like user interface.
▶️ Along with that, now with DeFi projects you can earn, trade, go long/short, DCA, participate in launchpools, etc.
▶️ This is a sign that the DeFi sector is evolving quickly, and now prices will follow too.
3) More Chains, Low Fees
▶️ DeFi started first on Ethereum, and then its hype died also because of Ethereum.
▶️ Those who have been in this space since 2020 know that in the last bull run, it costed $400-$500 to do a simple swap.
▶️ It costed $80-$100 to do a simple transaction, which 99% of crypto people can't afford.
▶️ This led to fewer activities on DeFi, and the hype died down slowly.
But since then, a lot has changed.
▶️ Now we have Solana, Sui, Aptos, and a bunch of L2s that allow lightning speed transactions with < $0.01 fees.
▶️ This is the reason DeFi TVL is hitting new yearly highs while their DAU (daily active users) are increasing rapidly.
▶️ To this date, a person with a < $500 crypto portfolio could also trade without worrying about high gas fees.
I mean, the market will surely price in these things, isn't it?
▶️ Now that we have gone through why DeFi is primed for a massive run, it's time to look at those projects that could give decent returns.
I'm only focusing on those DeFi projects that are established, have good liquidity, and have decent backing.
Now lets start 👇
1) $UNI
➬ Top DEX on Ethereum
➬ Revenue sharing will happen soon
➬ Down 80% from 2021 highs
➬ Low inflation, listed on every top CEX
2) $AAVE
➬ Biggest lending platform
➬ $15B in TVL, $90M annualized revenue
➬ Down 70% from 2021 highs
➬ 100% tokens in circulation, listed on every major CEX
3) $JUP
➬ DEX on Solana
➬ Fair launched project, 40% token allocated to community
➬ Everything DEX (Trade spot, perps, DCA, earn)
➬ High chances of 30% token burn, next airdrop in Jan 2025
4) $KMNO
➬ Biggest lending/ borrowing platform on Solana
➬ $1.84B in TVL, < $250M MCap
➬ No token unlocks till April 2025
➬ Next airdrop coming, more product developments
5) $NAVI
➬ Biggest lending platform on SUI
➬ $350M+ in TVL, < $60M MCap
➬ Offers lending/borrowing, swap etc.
➬ Moderate inflation till Jan 2025
That's the wrap!
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