As the short-term future of decentralized finance coins has become uncertain over recent days, analysts and investors in the space have weighed in on what they think comes next.
Case in point: the total value locked in DeFi contracts recently hit an all-time high above $12 billion despite the value of DeFi coins plunging by dozens of percent from their highs.
A number of analysts recently shared the opinion that Ethereum tokens have further to fall.
Other DeFi coins such as Chainlink have also surged higher as buyers enter positions in popular projects for the long haul.
Much of the DeFi space has yet to find a long-term bottom, analysts say as both Bitcoin and Ethereum find short-term highs in their price action.
"'Assuming BTC doesn't moon anytime soon, a -50% nuke is more likely than a +50% from here for DeFi IMO. After that we can begin a 2017-style bull market for the quality DeFi assets.
Assuming BTC doesn't moon anytime soon, a -50% nuke is more likely than a +50% from here for DeFi IMO. After that we can begin a 2017-style bull market for the quality DeFi assets.
"So basically if BTC gigapumps out of 14k I'll become neutral on defi alts in that I think they would hold their USD value from the rising tide. If normies start coming in, I'll be back to bullish."
As reported by CryptoSlate previously, Su Zhu, CIO and CEO of Three Arrows Capital, said that while he thinks investors will begin to deploy capital into "Top-tier" DeFi coins, he expects 95 percent of altcoins to be down against Bitcoin in the coming months.
While Bitcoin has begun to decouple from the S&P 500, analysts fear that in a world where equities begin to move strongly lower once again, few assets will be spared from a sell-off.
Despite 10% bounce in AAVE and YFI, analysts don't think the DeFi bottom is in
Published on Nov 2, 2020
by Cryptoslate | Published on Coinage
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