The latest trends in crypto are airdrops and meme coins, however, DeFi (decentralized finance) tokens seem to be dead. But wait, the market is about to usher in a major shift, and a new wave of FOMO is about to surge to DeFi. Why? Because DeFi tokens have lagged far behind ETH, which itself has lagged behind BTC. The only exception is PENDLE, which has risen by about 750% in the same period. 🚀
Airdrops and meme coins are the most active areas in this cycle, but for every successful meme coin, there are 99 that go to zero. DeFi OG tokens are the opposite of airdrops and meme coins: a large number of DeFi OG tokens are already circulating in the market, which puts less pressure on holders to sell.
However, the problem with DeFi tokens is that they lack practical use. But this situation is starting to change: Uniswap's fee switch may be a turning point for other DeFi protocols to follow suit, and UNI surged after the news. In addition, regulatory clarity may accelerate the trend towards revenue sharing.
Another problem is that DeFi 1.0 is too boring. But new things are always interesting as long as the price goes up. However, DeFi tokens have stood the test of time. They have survived the COVID-19 crash in 2020 and the centralized finance (CeFi) crash in 2022.
I believe DeFi tokens are a good choice for reverse trading now. There are very few people holding the original DeFi tokens, just like we accumulated ETH during the bear market and saw SOL rise. So if the trend changes, only a few OG tokens can attract capital inflows.
What do you think of DeFi tokens? Feel free to share your views in the comment section! 👇