Is it now at a point where buying a pile of shit makes money? I've noticed that many altcoins are no longer following Bitcoin but are instead moving according to ETH's lead. When the second-tier coins rise by 1%, the smaller ones jump 10-20%, and the pressure support in this kind of market makes it less meaningful to study K-line terms; just go ahead with your eyes closed, especially since the old mainstream coins are all experiencing a second spring!
However, we also need to pour some cold water; the second-tier coins can also drop by 5 points, and at that time, smaller ones will drop even more. When the market declines, this is when you should remember the benefits of DeFi, which is simple to operate with stable returns. The SOFA project I’ve been involved with seems to have started reducing the supply of RCH from today. Looking at the tokenomics, the airdrop has started reducing by 20% daily, and now there are only 10,000 left... However, from the price fluctuations, it’s still not very obvious; maybe we’ll have to wait for the reaction after 4 PM?
Many people compare SOFA with PENDLE; it's slightly unfair to compare it with a mature project that has developed over 3-4 years, but from Pendle's development history, there are still valuable lessons to learn.
When PENDLE first started, it was also stagnant, with TVL dropping to as low as 4 million. It truly began to show signs of life at the beginning of 2023 when the broader market was in a bottom consolidation phase, with BTC prices below 20,000, and hot money began to flow into DeFi projects with stable returns. Later, in July, it was launched on Binance, kicking off its positive flywheel, and both the token price and TVL experienced explosive growth. Currently, the total TVL is 4.2 billion, and the market cap is 1.1 billion, performing very well in this market cycle.
Now looking at the situation with SOFA, the TVL is stable at around 10 million, with a price of $0.5. Due to not being listed on major exchanges, it hasn't performed much in this market cycle, and we can only say it resembles Pendle's early days too closely. (The red area in the above image)
However, from the team's actions during this period, there is still quite a bit of hope. First, they arranged a lending option with CRV, integrated crvUSD, and then launched Automator to eliminate some tedious operations, providing you with a one-click experience that gives about 22% annualized return. In the past few days, they have also launched a Telegram mini-program: https://t.me/sofacorner_bot/sofacorner?startapp=13031613… paving the way for the launch of $SOFA (the Cushions points inside can be used for a lottery or exchanged for SOFA points).
All of this indicates that the team is still diligently working on the product. Friends holding RCH at the peak are quite anxious; Lee, who is responsible for the SOFA product, emphasizes one point every time he chats with everyone in Telegram - refine the product, and leave the pricing to the market. Take a look at the development history of Pendle; you can't rush it! But there's no need to worry too much; with RCH's reduction in supply and SOFA about to launch, we just need a trigger to ignite the market, and you never know the surge you’re expecting might be on the way.