We are reaching the stage where valuations are beginning to lose sense.
New projects out the gate with untested proven models are frequently hitting billion dollar valuations.
Multiple 'froth' signals are also surfacing across the board
2/ Does this mean its the top? Not necessarily.
As the saying goes - Signs of froth are indistinguishable from signs of adoption.
However I find myself thinking that certain projects can drop 90% in valuation now and still be fairly valued.
3/ Generic consensus is that $BTC still has some ways to go before hitting a 'top', largely driven by increased institutional acceptance.
Therefore it wouldn't be wrong to rely on a rising tide lifting all boats.
But how long will this last?
4/ Over the next 2-3 years, most circulating supplies will converge to their FDVs. FDVs will no longer be a meme and the market will have to decide if projects are truly worth the number they're ignoring today.
I for one believe that bullish unlocks are the exception to the rule
5/ This is not meant to be fud and I'm in the camp that we are in the beginning of a supercycle.
But ask yourself - how many projects will actually execute and produce real value proportionate to what the market is valuing them at today?
For some, there will be hell to pay.
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4 months ago, Bancor released their flagship single sided Impermanent Loss protection solution for LPs.
70x increase in TVL and 55x increase in volume later,
I present a deep dive on a forgotten DEX that may be the dark horse of 2021
👇
1/ Story so far
Bancor is a OG DEX launched in 2018 (to much fanfare) but suffered from an overcomplicated token model and lacked noticeable traction despite lofty promises.
2/ After 2 years of behind the scenes product iteration and a leadership reshuffle, the original Bancor vision is being realised. Consequently, the Bancorian community is stronger than ever led by @yudilevi@NateHindman@MBRichardson87.
2/ dHedge's value proposition is simple. It provides a platform for active fund managers to showcase their trading prowess, with a transparent scoreboard for all to see.
Managers can also interact with their investors via public and private posts
3/ Since Mainnet launch in late Oct 2020, dHedge's traction has been growing steadily with ~14m TVL today and over 200 active managers.
Cumulative trading vol on the platform stand at $87m, providing a nice boost to the underlying SNX system as well.
Right now ~$2.3bn funds are deployed farming UNI, with $ETH being the reference token.
This means that there is currently ~$1.1bn ETH locked up, about to be released into the wild.
Where do you think that ETH will go?
2/ Whilst a large portion of current TVL will stay in the same pools (fees generated are juicy), I posit a reasonable amount of ETH will leave the Uniswap system in search of higher yields.
Nobody knows numbers at this point but 50% of TVL leaving may be within reason.
3/ If this holds true, ~$500mm ETH will be on the market. They can:
A): Stake elsewhere ($SUSHI/$ALPHA/ETH 2.0 etc)
B): Remain in holder wallets (unlikely)
C): Be sold for stables / altcoins