DeFi Bubble Burst?

[disconnectme]

Everything is a bubble depending on the perspective at which you are looking at it, if XRP can be valued more than $4 billion and people still feel it is undervalued then you need to ask if the likes of Uniswap and other top projects are undervalued. What we are seeing now is price correction before the next leg up and I think this would be driven by Bitcoin rather by any DEFI projects

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[Sebas.tian]

The current decline is global and cannot be faulted for a coin or defi.
because the market is in a declining state, although the defi is admittedly a bubble but the current situation is happening globally not only in crypto market but the whole market.

Basically this always happen often because of digital currency volatiles. The drastic fall in the price of these coins shouldn't be associated with the world of #defi  alone. Even Bitcoin and ethereum was down within the stipulated time from OP, some of my holdings where also down when the crash occur. Sometimes this week the cryptocurrency market experienced something common with prices, Bitcoin went down alongside other cryptocurrencies and hope to see them bullish again soon. This doesn't mean it's for going to be down forever.

[Clement Kaliyar]

I disagree that these drops are a small thing, they are very big because none of them are like bitcoin itself, bitcoin could have a drop because it is the first ranked coin and it will come back, none of these can drop and make it back to where they used to be.

I agree that you cannot compare these coins with bitcoin and the fact remains that the hype took the market for a huge rally and the bubble will burst and hence we might be seeing a huge correction in the DeFi market and the recover depends upon the strength of the project. I am yet to dive into the hype completely but trying to understand what is going on.

[furball64]

Previously, you could hear that cryptocurrencies are a big bubble. This is what people who are far from cryptocurrencies said. Of course, you can make a lot of money here in a short period of time. Personally, this is the crypto market that attracts me. If I wanted to earn drop by drop and without risks, then I would turn my gaze to the banking sector. But I am interested in big and quick earnings, so I am in the crypto market and invest in new projects, including some DEFI projects.

[xiboothrezi]

Everything is a bubble depending on the perspective at which you are looking at it, if XRP can be valued more than $4 billion and people still feel it is undervalued then you need to ask if the likes of Uniswap and other top projects are undervalued. What we are seeing now is price correction before the next leg up and I think this would be driven by Bitcoin rather by any DEFI projects

Basically, the crypto world is very volatile, depending on the trend, even rumors and issues can cause significant price movements.
DeFi is a popular trend nowadays, like the ICO period in 2017, there are many opportunities that can be used, but we must be careful with preparing a strong strategy and analysis. We have to analyze the timing correctly, enter when there is a good chance and exit immediately if there is a bad signal. remember, don't fomo, most DeFi goes up fast but the descent is fast, don't take a fast train.
Many defi projects have emerged, some are potential, and some are half-baked. Choose the safest, with the risk that you can bear.

[South Park]

I think this must be indirectly related to the Bitmex case:

Why the BitMEX charges could be bad news for DeFi


DEFI in the near future will have to face the wrath of regulators and investors who already dreamed that DEFi were the infinite gold mine and revolution in the world of finance must be returning to planet Earth and are realizing that things are not as simple as seemed. I even wondered about this subject

the drastic decline of some of the top defi projects in the market doesn't mean the defi hype has ended.

really? I have the impression that things will be different going forward

Very interesting article, however this tells us a lot about the DeFi market, to begin with most coins are not even decentralized at all so they are basically a scam or they are misrepresenting themselves, the next problem is that governments can attack the developers themselves of those platforms and kill the platform that way, however this can easily be solved, we need another satoshi when it comes to those markets, someone that develops a true DEX and that does it in an anonymous way and makes his code open source.

[EmmaGod]

It may be too early to conclude that the defi bubble has burst, though I anticipate the reduction in the defi trend anytime soon. I have a conviction that what we have presently is a general issue as the market is bleeding generally and both non - defi projects are also affected by the issue.

[MainIbem]

No. The time is not yet right to conclude that the end of DeFi is here. However, it is reasonable to believe that all is not well with that sector of the industry.

[alisonwonder]

No. The time is not yet right to conclude that the end of DeFi is here. However, it is reasonable to believe that all is not well with that sector of the industry.

well I totally agree with what you say because currently DeFi has just started and still has a very long way to go, so keep up with the flow and take advantage of its price movements to make a profit, nowadays many investors are starting to enter DeFi based platforms.

[louisBSAS]

Any investment projects can be compared to a bubble. Because always breakthrough projects in new directions grow very quickly in price. The only difference with bubbles is whether the investment price falls dramatically later or not.

[pyotrsozblo]

No. The time is not yet right to conclude that the end of DeFi is here. However, it is reasonable to believe that all is not well with that sector of the industry.

well I totally agree with what you say because currently DeFi has just started and still has a very long way to go, so keep up with the flow and take advantage of its price movements to make a profit, nowadays many investors are starting to enter DeFi based platforms.

Perhaps they are starting to invest in them again?  The bubble has already deflated enough, but many projects have a right to life. They will stay with us for a long time

[asriloni]

In no case. The situation is stabilizing. The wild growth was caused by the hype, now everything will return to normal. Defi will develop, this is a very promising direction.

It looks like there will be less scam defi in the future. The trend is not yet getting changed and people have already started to think the long term development of defi.

So many institutions have already tried to be a venture capital for the defi platforms too.
The hype is over but this time how good the defi will be proven from its development result. it's very interesting to see how the competition will be.

I'm very exciting.

[LogitechMouse]

We have witnessed a massive popularity regarding DeFi projects, but it's seems that DeFi hype is over. For the past week DeFi tokens plunged massively.

The plunge of these tokens doesn't mean that they hype is over .
There will be new projects that will emerge and will be a pump and dump token. Investors will surely fall to these new DeFi tokens and some of them will lose their money.

Bubble burst?? I don't think so. Although there are fewer projects right now that are being created, the bubble is still there. Just wait for it. Scammers are waiting for the perfect opportunity to scam newbie investors.

[Bitstar_coin]

In no case. The situation is stabilizing. The wild growth was caused by the hype, now everything will return to normal. Defi will develop, this is a very promising direction.

It looks like there will be less scam defi in the future. The trend is not yet getting changed and people have already started to think the long term development of defi.

So many institutions have already tried to be a venture capital for the defi platforms too.
The hype is over but this time how good the defi will be proven from its development result. it's very interesting to see how the competition will be.

I'm very exciting.

Nah, i highly doubt what you say, the scam will be same in future as now because the defi trend still exist, people still want to make money both short and long term base, it is just like during ico, despite many legit ico there were also many scam ones and to the point that the scam project supersede the legit ones, thus ieo was introduce but even that was not left untouched by scammers, so in the case of defi, as long as the trend exit, there will always be scammers trying to get smart.

[peterpanda]

The drops in DeFi projects value aren't that bad and since bitcoin finds its way back to 11500 dollars thinks are starting to look alright for projects like Aave, COMP and others, if you are the type that always expect crypto projects to keep surging you should think twice, crypto projects will always go down at one point in time, if you don't want to see your portfolio lose value better take profits and switch to USDT

We can't exchange all the crypto currency to USDT. If we do it all the time, then what will be the condition of others crypto currency? Some time we have to take some risk also for our betterment.

[louisBSAS]

In no case. The situation is stabilizing. The wild growth was caused by the hype, now everything will return to normal. Defi will develop, this is a very promising direction.

It looks like there will be less scam defi in the future. The trend is not yet getting changed and people have already started to think the long term development of defi.

So many institutions have already tried to be a venture capital for the defi platforms too.
The hype is over but this time how good the defi will be proven from its development result. it's very interesting to see how the competition will be.

I'm very exciting.

Of course, we can wait and see how events develop. We can also see that the number of scams among DEFI projects will only increase. This is primarily due to the fact that there is a lot of interest from investors in the DEFI sector. And where there are investors, there will always be scammers.
Time will tell whether the bubble is DEFI, but now we need to be careful.

[South Park]

No. The time is not yet right to conclude that the end of DeFi is here. However, it is reasonable to believe that all is not well with that sector of the industry.

I disagree but to each his own I guess, to me it seems as if there are still many people that are expecting for the bubble to continue but if you take a look at what it is happening institutional investors do not care about altcoins at all, they care about bitcoin and nothing else because they know bitcoin is the most important coin in the market by far and altcoins despite the huge profits they can give are not really big enough for them, which means that only retail investors are interested in such coins and they do not have enough money to keep fuelling the DeFi bubble.