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

āžœ On 6th November, #crypto bros got what they dreamed of for many months.

Ā āžœ Donald Trump won the election, #BTC hit a new ATH, and alts started ripping.

Ā āžœ Since then, BTC is up nearly 15%, #ETH is up over 20%, while alts are up 50%-100%.

Ā āžœ Yet, my timeline is quite silent as there are so many people sidelined right now.

āžœ In the past few days, I have started to pay more attention to the DeFi sector.

Ā āžœ 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.

Ā āžœ Since 2020, the crypto market has not witnessed a major DeFi rally, but now this could be the time.

Ā 

Let's start with 3 major reasons why DeFi shouldn't be ignored šŸ‘‡

1) New Administration, More Clarity

Ā 

āžœ We all know Gary is a puppet of big banks, of which DeFi is the direct competitor.

Ā āžœ In the past few years, the SEC has gone after major DeFi projects, including Uniswap, which has resulted in sluggish price action.

Ā āžœ The SEC aims to have control over DeFi, which completely kills its purpose.

Ā 

But now, this is going to change soon.

āžœ As Trump has mentioned earlier, he will fire Gensler on Day 1 and will choose someone who's more crypto-friendly.

Ā āžœ This means there'll be more clarity around DeFi, securities law, and other things.

Ā All this will lead to one thing: More liquidity and adoption.

Ā 

Higher Adoption āžœ More Liquidity āžœ Higher Prices

2) Huge Developments

Ā 

āžœ Since 2020, DeFi TVL and developments have gone 10x while prices are down 80%-90%.

Ā 

There are a few reasons behind it.

Ā 

- Hacks and theft

- Bad UI and difficult to trade

- Limited products

Ā 

But now, things are changing quickly.

ā–¶ļø In the past few years, several DeFi projects have launched that have stood the test of time.

ā–¶ļø They have several products similar to CEXes, good liquidity, and a CEX-like user interface.

ā–¶ļø Along with that, now with DeFi projects you can earn, trade, go long/short, DCA, participate in launchpools, etc.

ā–¶ļø This is a sign that the DeFi sector is evolving quickly, and now prices will follow too.

3) More Chains, Low Fees

Ā 

ā–¶ļø DeFi started first on Ethereum, and then its hype died also because of Ethereum.Ā 

ā–¶ļø 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.

ā–¶ļø It costed $80-$100 to do a simple transaction, which 99% of crypto people can't afford.

ā–¶ļø This led to fewer activities on DeFi, and the hype died down slowly.

But since then, a lot has changed.

Ā 

ā–¶ļø Now we have Solana, Sui, Aptos, and a bunch of L2s that allow lightning speed transactions with < $0.01 fees.

Ā ā–¶ļø This is the reason DeFi TVL is hitting new yearly highs while their DAU (daily active users) are increasing rapidly.

Ā ā–¶ļø To this date, a person with a < $500 crypto portfolio could also trade without worrying about high gas fees.

Ā 

I mean, the market will surely price in these things, isn't it?

ā–¶ļø 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.

Ā 

I'm only focusing on those DeFi projects that are established, have good liquidity, and have decent backing.

Ā 

Now lets start šŸ‘‡

1) $UNI

āž¬ Top DEX on Ethereum

āž¬ Revenue sharing will happen soon

āž¬ Down 80% from 2021 highs

āž¬ Low inflation, listed on every top CEX

2) $AAVE

āž¬ Biggest lending platform

āž¬ $15B in TVL, $90M annualized revenue

āž¬ Down 70% from 2021 highs

āž¬ 100% tokens in circulation, listed on every major CEX

3) $JUP

āž¬ DEX on Solana

āž¬ Fair launched project, 40% token allocated to community

āž¬ Everything DEX (Trade spot, perps, DCA, earn)

āž¬ High chances of 30% token burn, next airdrop in Jan 2025

4) $KMNO

āž¬ Biggest lending/ borrowing platform on Solana

āž¬ $1.84B in TVL, < $250M MCap

āž¬ No token unlocks till April 2025

āž¬ Next airdrop coming, more product developments

5) $NAVI

āž¬ Biggest lending platform on SUI

āž¬ $350M+ in TVL, < $60M MCap

āž¬ Offers lending/borrowing, swap etc.

āž¬ Moderate inflation till Jan 2025

That's the wrap!

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