Are you interested in investing in DEX's tokens in 2024-2025 uptrend?

[KryptoBull]

DeFi Summer 2020 created dozens of different DEXs, and users were able to profit from liquidity mining and Yield Farming^[1]. DEX's token has had extremely impressive growth: UniSwap's UNI token price has increased 301 times, PancakeSwap's CAKE token price has increased 206 times. However, the tokenomics of DEX's tokens are not really good and the harshness of crypto winter has caused UNI token price to drop by 93%, while CAKE token price has dropped by 98%. Holders would have suffered many losses if they could not decisively stop losses. DEXs have been operating effectively in recent times, but DEX's tokens have been removed from the watchlist of many investors, including me.

However, things may soon change because the proposal to revamp the platform's governance system was recently launched by UniSwap. This proposal, introduced by Erin Koen, the Uniswap Foundation's governance lead, aims to incentivize active participation and strengthen decision-making within the protocol.

The core aspect of the proposal involves distributing protocol fees amongst UNI holders who stake and delegate their tokens. This shift seeks to create a more engaged and responsible community by directly tying rewards to participation in governance.

"I believe we should upgrade the protocol so that its fee mechanism rewards UNI token holders that have staked and delegated their tokens," Erin Koen wrote in an X post^[2].

I think this proposal is very effective to help increase UNI token price: it will create more motivation for investors to continue buying, staking and delegating their UNI tokens, thereby increasing buying pressure and reducing selling pressure of UNI tokens in the market, giving UNI price strong support. Uniswap's UNI token saw a dramatic increase of 60% following this proposal. Other DEX's tokens have also seen significant growth although they have not yet introduced any offerings similar to UniSwap's, but I believe they will soon learn to improve their tokenomics and support their token prices.

To be honest: when I saw the improvement in tokenomics (fundamental analysis) and the very good support of Dragon EMA34W on the price chart (technical analysis), I added UNI and CAKE to my watchlist to consider and invest in after BTC Halving. This is not investment advice!

I'd like to hear your opinion on DEX's tokens:

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

References:
[1] A Look Back at 2020, the Year of DeFi
[2] Uniswap's UNI Jumps 60% on Proposal to Reward Token Holders in Major Governance Overhaul

P/s: Idea from MrSpasybo's topic: Will the Metaverse trend return soon?
Note:

• My opinion was posted first in that topic, on Bitcointalk
• I leave the source link to avoid plagiarism accusation.
• I excluded/ included minor things from an original thread ^{if necessary}.

[joniboini]

Wouldn't this make them more vulnerable to accusations that their tokens are security tokens though? Then again I don't think it is anything new, many projects use more or less the same mechanism to incentivize people to buy and stake their tokens. I'm not sure it will change that much, maybe only for big names who are yet to use it, this will pump the price in the short-term, but the long-term effect is probably negligible. At the very least, based on what I've seen on projects that I've followed, rewards from staking, etc are not enough to sustain interest unless your project literally has millions of volumes. Basically, the best way to increase participation is to make your project more valuable by doing other stuff, not giving a staking reward itself. CMIIW.

[TomPluz]

There is no question that the luster of DEX tokens has already dimmed...all waiting for some impetus to shine again and be attracting the attention of many small and big investors. I usually just use DEX if there is a coin or token I want to trade and it can only be done in a DEX, otherwise I would prefer the top CEXs we have in the market. Losing a great deal of value can be frustrating for many who believed a lot on a DEX in question...and the more you lose the more you bleed as confidence is waning and in many cases getting back is not going to be an easy task. I am hoping that Uniswap can take even just half of what it lost...especially in the bullish season that we are in. These days, I seldom read recommendations for people to get into DEX tokens...which is in a way a big vote of NO from the market.

[MrSpasybo]

DeFi Summer 2020 created dozens of different DEXs, and users were able to profit from liquidity mining and Yield Farming^[1]. DEX's token has had extremely impressive growth: UniSwap's UNI token price has increased 301 times, PancakeSwap's CAKE token price has increased 206 times. However, the tokenomics of DEX's tokens are not really good and the harshness of crypto winter has caused UNI token price to drop by 93%, while CAKE token price has dropped by 98%. Holders would have suffered many losses if they could not decisively stop losses. DEXs have been operating effectively in recent times, but DEX's tokens have been removed from the watchlist of many investors, including me.

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

I'm not too surprised about the return of UNI and the tokens from DEX. DeFi is the heart of the crypto market, in which DEX is the center of DeFi, if DEX has users, DEX tokens are not easily forgotten in the bullrun.

In the previous cycle, tokens like UNI or CAKE did not have much value other than governance, while motivating users to add LP to ensure low slippage similar to CEXs. Now UniSwap simply introduces a new application value even though there is nothing special or new, which is staking or delegating like many other POS Layer-1 blockchains have done for many years. But the story gets hyped, MM pushes the price and we see a comeback for these tokens.

1. In previous cycle, I bought CAKE and had a profit of about a few dozen percent in 2021. Those who joined early, during the DeFi summer of 2020, had much larger profits.

2. DEX will return and DEX tokens will also return to compete with other tokens in the market of many other trends.

3. If investing in DEX tokens, I like Layer-2 tokens like DYDX or GMX. CAKE is also a good choice, but Pancake lacks a good enough story like Uni or belongs to the Layer-2 trend like many other DEXs.

[KryptoBull]

There is no question that the luster of DEX tokens has already dimmed...all waiting for some impetus to shine again and be attracting the attention of many small and big investors. I usually just use DEX if there is a coin or token I want to trade and it can only be done in a DEX, otherwise I would prefer the top CEXs we have in the market. Losing a great deal of value can be frustrating for many who believed a lot on a DEX in question...and the more you lose the more you bleed as confidence is waning and in many cases getting back is not going to be an easy task. I am hoping that Uniswap can take even just half of what it lost...especially in the bullish season that we are in. These days, I seldom read recommendations for people to get into DEX tokens...which is in a way a big vote of NO from the market.

After the sharp decline during crypto winter, many investors have realized that DeFi cannot help make the crypto market safer and more stable. DEX's tokens also lost a lot of value and caused investors to lose money. Currently, I think DEXs are trying to find some innovation to attract investors' attention, otherwise the cash flow will only focus on tokens of new projects in Layer-2 or restaking trends.

Choosing to stay away from DEX's tokens is also a safe choice, the market has a lot more potential projects and tokens.

I'm not too surprised about the return of UNI and the tokens from DEX. DeFi is the heart of the crypto market, in which DEX is the center of DeFi, if DEX has users, DEX tokens are not easily forgotten in the bullrun.

In the previous cycle, tokens like UNI or CAKE did not have much value other than governance, while motivating users to add LP to ensure low slippage similar to CEXs. Now UniSwap simply introduces a new application value even though there is nothing special or new, which is staking or delegating like many other POS Layer-1 blockchains have done for many years. But the story gets hyped, MM pushes the price and we see a comeback for these tokens.

CAKE token had an impressive price increase thanks to the popularity of BSC in 2021, it was really worth it that year, but unfortunately dropped sharply in price in 2022 & 2023.

I believe the return of DEXs is inevitable in every altseason. New money often has to go through DeFi to enter the market and DEXs are an interesting and seemingly safer option than CEXs as investors tend to self-custody crypto assets. I also believe that DEX tokens will have an impressive growth season, enough to put them on par with CEX tokens such as BNB or HT.

[ABCbits]

I'd like to hear your opinion on DEX's tokens:

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

1. No.
2. Yes, mainly due to price rise of many coin/token and some DEX support coin which banned from CEX (primarily privacy coins).
3. Probably not, i'd rather focus on cryptocurrency (which have it's own network).

[Altcoin1998$]

Decentralized Exchange Tokens especially DEX Tokens got a lot of hype in 2021 but currently these coins are not getting much hype in the market. So for now I don't want to invest in nonhype projects but this year Ordinals coins are getting a lot of hype in the market. Rather than investing in Dex and Memecoin, investing in Ordinals projects and holding will be much wiser.

[TopT3ns]

Decentralized Exchange Tokens especially DEX Tokens got a lot of hype in 2021 but currently these coins are not getting much hype in the market. So for now I don't want to invest in nonhype projects but this year Ordinals coins are getting a lot of hype in the market. Rather than investing in Dex and Memecoin, investing in Ordinals projects and holding will be much wiser.

Unfortunately, this investment model does not last long and currently more people invest in Meme coins. It is clear that there are many meme coins that are currently increasing in price, such as Shiba, PEPE and Dogecoin, so for me, DEX cannot always be hype because investors will definitely keep trying something new to make a lot of profit quickly.

[Mr. Magkaisa]

       -  Maybe it depends on the performance of the Dex platform, and it also depends on whether the coin I want to trade is only on the Dex platform, but if there is a Cex platform, I will choose the Cex because I am more comfortable doing day trading activity compared to the Dex.

I also rarely use Dex when I only have coins that I see that are good and have potential to hold and good trading activity as well; this is what I do most of the time.

[hugeblack]

Technical analysis of DeFi tokens may not give accurate results because we are analyzing a group of pairs of cryptocurrencies and in factors that are completely different from the current factor and not an analysis of a single pair of cryptocurrencies. It will be like an index of the top 20 stocks combined.

Also, the main incentive was the return from tokens, which was driven by low-interest loans in 2021 and an abundance of cash, which is something that does not exist in 2024/2025. Therefore, if I had cash and instead of spending in DeFi tokens, I would definitely prefer Bitcoin, regardless of the level of excavation, especially after the bankruptcies that occurred in 2022.

[KryptoBull]

       -  Maybe it depends on the performance of the Dex platform, and it also depends on whether the coin I want to trade is only on the Dex platform, but if there is a Cex platform, I will choose the Cex because I am more comfortable doing day trading activity compared to the Dex.

I also rarely use Dex when I only have coins that I see that are good and have potential to hold and good trading activity as well; this is what I do most of the time.

I want to talk about DEX's tokens, for example UniSwap's UNI, PancakeSwap's CAKE, BakeSwap's BAKE... I'm not mentioning whether we should use DEX or CEX, this is a good idea for a future topic that I will create.

I'm also more used to using CEXs than DEXs: CEXs have more types of tokens available and I don't need to care which blockchain the token is on, which native token to use to pay fees, and which Dapps to use.

--
Also, the main incentive was the return from tokens, which was driven by low-interest loans in 2021 and an abundance of cash, which is something that does not exist in 2024/2025. Therefore, if I had cash and instead of spending in DeFi tokens, I would definitely prefer Bitcoin, regardless of the level of excavation, especially after the bankruptcies that occurred in 2022.

Maybe we will see the FED reduce interest rates in May or June this year, this will be one of the important driving forces for money to flow into the markets, including crypto and I believe many Altcoins are also will grow, including DEX's tokens.

Anyway, the decision to invest in BTC is always considered the safest and most stable in the crypto market.

[Trongduy]

To be honest: when I saw the improvement in tokenomics (fundamental analysis) and the very good support of Dragon EMA34W on the price chart (technical analysis), I added UNI and CAKE to my watchlist to consider and invest in after BTC Halving. This is not investment advice!

I'd like to hear your opinion on DEX's tokens:

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

Looks like you got FOMO again because of DEX token!
When DeFi returns, DEX cannot be forgotten. It's just that in the past few months, restaking has been sucking all the cash flow into the market, and DEX has hardly received any positive impact. Updating tokenomics is necessary and not unexpected: Uniswap is still the DEX with the most initiatives for the community and helps DEX tokens return soon. In comparison, DEX tokens are also more potential and safer than staking, you can also put some into UNI, DYDX or CAKE this season. Now, looking at BTC increasing, I'm afraid to even enter the market to accumulate or all-in any token.

[Gurujebs]

Decentralized Exchange Tokens especially DEX Tokens got a lot of hype in 2021 but currently these coins are not getting much hype in the market. So for now I don't want to invest in nonhype projects but this year Ordinals coins are getting a lot of hype in the market. Rather than investing in Dex and Memecoin, investing in Ordinals projects and holding will be much wiser.

When it comes to utility of exchange tokens, the ones that remain relevant to now are centralized exchanges and that's because they have utility in the exchange like centralized launchpad for IEO, trading fees reduction and other benefits such as bonus and vip priorities but decentralized exchange tokens don't have all these features, they don't have use cases and deflationary the way centralized exchanges have and that's why they dump heavily during the bear market.

[LogitechMouse]

I'd like to hear your opinion on DEX's tokens:

• Have you ever invested in DEX's tokens? Did you profit or lose from them?
• Do you think DEX's tokens trend will return in 2024-2025?
• Will you invest in DEX's tokens in the future? If so, which ones?

1. Yes. Pancakeswap like you said lost 98% of its value after the bull run, and I'm one of the investors who lost money investing in it. I moved on from it already, but I still remember that I bought it for $32 a piece, and I think because of a lack of trust in the project, I sold it for $2. I know, I know it's a huge loss, but as investors, our journey will not be exciting if we do not encounter those losses. What's important now is that I learned from that mistake, and I hope that those who made mistakes in the past will learn from them as well.

2. Those DEXes that are in the top 100 might stay in the top 100, or we might see some going below the top 100. Token's trend will return? What I only know is that tokens like UNI, AAVE, COMP, RUNE, etc. will increase in price, but there's a chance that they might not even surpass their previous 2021 ATH. Well, it happened also in 2021, and it might happen again this time.

3. I might be on UNI just for this bull run. I mean I just want to ride the hype, but I don't see them holding for the long-term (like 2-4 years).

[EthereumDev_]

When it comes to utility of exchange tokens, the ones that remain relevant to now are centralized exchanges and that's because they have utility in the exchange like centralized launchpad for IEO, trading fees reduction and other benefits such as bonus and vip priorities but decentralized exchange tokens don't have all these features, they don't have use cases and deflationary the way centralized exchanges have and that's why they dump heavily during the bear market.

From what I know, exchanges have their own policies regarding providing benefits to their users, maybe exchanges like Binance provide many benefits with centralized launches for IEO, but in some other exchanges it's not necessarily like that because I'm sure every exchange has different regulations.