The Rise of DeFi — A Temporary Threat to Major Coins?

[jayson (www.torum.com)]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

[Review Master]

Well, it's look likes a fomo to me because it'll vanish just like other trends when more public will attract into Defi and get low reward as it's the main point for all the newcomers who get interest into defi. Also i see many of the well reputed Top crypto projects are shifting to Defi catagory. Recently, Tomochain get the Defi tag on CMC and all people get in fomo and buy tomo.As a result, tomo get an instant pump. But the major coins won't be effected , imo.

[jayson (www.torum.com)]

Well, it's look likes a fomo to me because it'll vanish just like other trends when more public will attract into Defi and get low reward as it's the main point for all the newcomers who get interest into defi. Also i see many of the well reputed Top crypto projects are shifting to Defi catagory. Recently, Tomochain get the Defi tag on CMC and all people get in fomo and buy tomo.As a result, tomo get an instant pump. But the major coins won't be effected , imo.

You absolutely right the FOMO. Greed is always comes in hand with trend. And trend will always expired once there are too many participants. If the capital shift did happen, the capital will eventually shifted back to major coins, especially Bitcoin when the trend is dying. Bitcoin is still the most decentralized and secured cryptocurrency.

[jossiel]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins,

Those speculations about bitcoin's plunge are wrong. Just to see the price of bitcoin today, it has been up by +$200. The stable price that it has for the past few days was $9050 - $9100.

Then suddenly it surged to $9300.

do you guys believe we are going to see a downward movement in the coins?

We will always deal with the downward at any time so just expect it while the prices are going up until it lasts.

[LbtalkL]

DeFi is really something now, I didn't know Chainlink and compound is a defi project until coinmarketcap added a list of defi projects and surprisingly LINK is the top 1 https://coinmarketcap.com/defi/. and because of that I learn new defi projects. They are not really a threat, each crypto has its purpose, most of them are using ETH network, that is their weakness as of now. If ETH is clogged all of them is affected but this new tech provided by defi is amazing.

[ScamViruS]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

Defi is another new tool for pumping altcoin. As a result, some coins may be getting the benefit that they have been dumping for so long. And everyone knows what the result will be after this pump. But newbies don't know anything about this. Major coins are not among the coins that are being discussed with Defi. So the major coins were not affected.

[Harlot]

It can trigger a bear period for the top cryptos in the market if DeFi will really be a hit. If we take a look at the situation right now you will see that lending might be really big as a lot of people will be looking for some loans due to them being affected by the pandemic, people who have extra crypto lying around might see this as an option and they might offload their crypto to buy these type of cryptocurrencies but this is just one big speculation and it might not happen.

[kingzpro]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

DeFi craze is real and the pumps in some of the coins/tokens in this sector are huge which no one was expecting a month ago to be honest but being greedy and entering late can be risky because market is highly volatile and trend can change anytime because DeFi have a long way to adoption and till then it is all speculation and fomo.

[ololajulo]

Well, it's look likes a fomo to me because it'll vanish just like other trends when more public will attract into Defi and get low reward as it's the main point for all the newcomers who get interest into defi. Also i see many of the well reputed Top crypto projects are shifting to Defi catagory. Recently, Tomochain get the Defi tag on CMC and all people get in fomo and buy tomo.As a result, tomo get an instant pump. But the major coins won't be effected , imo.

The idea cant be sustain for a very long time time, creating scarcity by reward to increase price but when the time of sale comes the rate of price dump will also be very massive. FOMO is always making money for some side of the market and everyone is trying to be part of it, especially the top exchanges, Listing those coin with very short notice.

[Synaesthesia]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

DeFi craze is real and the pumps in some of the coins/tokens in this sector are huge which no one was expecting a month ago to be honest but being greedy and entering late can be risky because market is highly volatile and trend can change anytime because DeFi have a long way to adoption and till then it is all speculation and fomo.

The current Defi projects are very attractive to investors and certainly this trend will last for a while longer. However, recently a lot of scam projects are appearing more and more and just adding Defi is immediately project that will be of interest. I think, you should take the time to research first because you can still be at risk at any time when investing in projects like this.

[TimeTeller]

Well, it's look likes a fomo to me because it'll vanish just like other trends when more public will attract into Defi and get low reward as it's the main point for all the newcomers who get interest into defi. Also i see many of the well reputed Top crypto projects are shifting to Defi catagory. Recently, Tomochain get the Defi tag on CMC and all people get in fomo and buy tomo.As a result, tomo get an instant pump. But the major coins won't be effected , imo.

The idea cant be sustain for a very long time time, creating scarcity by reward to increase price but when the time of sale comes the rate of price dump will also be very massive. FOMO is always making money for some side of the market and everyone is trying to be part of it, especially the top exchanges, Listing those coin with very short notice.

This may be their time to shine but I still believe that if the coin has good foundation, strong dev team and actual use case in the market, they can still have good performance in the market.
So it doesn't matter if your DeFi project or not, as long as you have continuous development in your network, you have the chance to survive.
For sure, a lot of crap DeFi projects will be launched in the coming days. And it is up to the user, how he will identify those that are really worthwhile projects.

[slaman29]

I don't know guys. Feels so tempting for me to go in and earn interest on things too, but I had a bad lesson to learn before about trusting platforms and companies, no matter how good they are or how big their reputation is (I trusted someone on the highest possible trust level on this forum). You lose your money, you cry. And for what? 10% interest a year?

DeFi is big now but I fear it is the lack of controls and FOMO that will cause this to be the next bubble.

[WSDN]

I don't know guys. Feels so tempting for me to go in and earn interest on things too, but I had a bad lesson to learn before about trusting platforms and companies, no matter how good they are or how big their reputation is (I trusted someone on the highest possible trust level on this forum). You lose your money, you cry. And for what? 10% interest a year?

DeFi is big now but I fear it is the lack of controls and FOMO that will cause this to be the next bubble.

I agree with you. I think this investment trend will only exist for a few more months so if you can choose a potential project, consider investing now. I am not sure if everyone will be interested in Defi projects next year, but there will certainly be another trend by that time and it will surely attract more investors. Anyway, this stage is the growth stage of the Defi project so invest if you feel the project is potential.

[jrrsparkles]

Recently, there is a massive surge of interest in DeFi, and you can see so many DeFi projects booming, like Aave and Compound. I was just wondering if this phenomenon will trigger a temporary downward movement in major market cap coins. For the past week, we are able to see that major cap coins are very stable within a set of price range, showing a lack of public interest in them. My belief is that the capital will move from top coins to DeFi tokens.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

Since you itself mentioned that temporary effect on the prices so coins which are trusted by the community will not have any effect on this and this is bad for the Defi projects itself in the long run if the investors started to dump their tokens after a while.

[shata]

Defi projects had proved to be an evidence that cryptocurrency can work like traditional banking sector as something put into the context of our current technology.

That being said, defi will still continue to work in the near future, and potentially the best investment tool right now.

Further, its up to every person, how they will make profit? Either by staking into defi projects or investing into existing cryptocurrency.

I believed lots of projects in the space are focusing on becoming centralized as they imitate the traditional sectors like banks, financial institutions and etc., to do transactions.

In addition, the thought of trusting companies is one of common risks we already accept the moment we dealt/made our first crypto transaction. so yeah! thats how it is...

I don't know guys. Feels so tempting for me to go in and earn interest on things too, but I had a bad lesson to learn before about trusting platforms and companies, no matter how good they are or how big their reputation is (I trusted someone on the highest possible trust level on this forum). You lose your money, you cry. And for what? 10% interest a year?

DeFi is big now but I fear it is the lack of controls and FOMO that will cause this to be the next bubble.

I agree with you. I think this investment trend will only exist for a few more months so if you can choose a potential project, consider investing now. I am not sure if everyone will be interested in Defi projects next year, but there will certainly be another trend by that time and it will surely attract more investors. Anyway, this stage is the growth stage of the Defi project so invest if you feel the project is potential.

[shoreno]

this defi is so hyped now . people keeps on talking with that anywhere and thats the start of curiousity of others that are new to it and they start checking it out . they stop buying thier main coins for a while which causes for the price to go down but as soon as they got used to defi , they will start crawling back again on the originals. thats only a classic move by the investors , they will keep doing it as long as there are new discoveries on the crypto world .

[leyton11]

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

That is definitely not. The top altcoins are said to be good long-term investment goals and it still works very well. certainly the money will be more different and inclined towards defi altcoins, the obsolete altcoins will be more likely to be expelled from the market. That's why thousands of coins are removed from the market every year for not catching up with the trend.

[BTCXRPADA]

DeFi is really something now, I didn't know Chainlink and compound is a defi project until coinmarketcap added a list of defi projects and surprisingly LINK is the top 1 https://coinmarketcap.com/defi/. and because of that I learn new defi projects. They are not really a threat, each crypto has its purpose, most of them are using ETH network, that is their weakness as of now. If ETH is clogged all of them is affected but this new tech provided by defi is amazing.

Blocknet is a DEFI projects as well, been for a long time, so I'm sure it will get a lot of attention soon as well, mainly because they work on enhancing the whole ETH network through a decentralized "Infura" solution, which decentralizes the data being broadcasted between the ETH network, and it's tokens.

[Mulann2]

I think this is most likely,  definitely everyone wants a piece of the pie, defi are very hot this days and anyone who invested in any defi project believe they have hit a jack pot, but i think this is just over hyped because I do believe not all defi project will perform the same and being huge profit to investors, the market have in a very stable position this few days, it may be the reason why investors are looking for something new and interesting.

[X-ray]

.

Since DeFi is now the trend in the crypto space, and lots of people are speculating for the plunge in Bitcoin and other top cap coins, do you guys believe we are going to see a downward movement in the coins?

I will remind you that these DEFI were building inside the major platforms. I don't see any reason for the bitcoin to be replaced by defi coins. It looks like you must see it from the technical view too.
DEFI is not having the main aim to replace any other crypto currency.