Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: MrSpasybo on February 11, 2024, 12:29:28 AM
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2020 is the year of the latest BTC Halving and we had a huge DeFi Summer in 2020 with the birth of DEXs and projects in the DeFi sector. Investors are attracted to yield farming's high returns. The year began with a modest $700 million locked in DeFi protocols. By December, that figure had skyrocketed to $15 billion, fueled by innovations like yield farming, where users deposit crypto to earn high returns[1].
DeFi is the heart of each blockchain ecosystem, where money flows and circulates to make the entire ecosystem grow stronger. Therefore, I believe that DeFi will still exist and grow strongly in the upcoming cycle.
In 2023, the development of Layer-1 and Layer-2 blockchain platforms has helped increase transaction speeds and reduce fees, lowering the barrier to entry for investors in crypto and especially in DeFi.
Currently, we see the emergence and success of projects in the DeFi sector in the directions of Liquid Staking[2] (LSD: Lido (https://defillama.com/protocol/lido)) and Liquid Restaking[3] (LRD: EigenLayer) (https://defillama.com/protocol/eigenlayer) on Ethereum. Profits from them are made up of many layers and are really attractive to investors and what is more remarkable is that this model can be completely replicated to other POS blockchains.
I used to think that with the increase in BTC price, Layer-1, Layer-2 or GameFi would lead the market into a new bullrun in 2024. But now, maybe we will see DeFi Summer 2.0 in 2024. I have tried to learn about Liquid Staking and Liquid Restaking, they still have the same weaknesses and unsustainability as Yield Farming but it cannot be denied that they are attracting money from investors and achieving huge TVL.
Do you think DeFi Summer will return in 2024? Do you believe in the sustainability of the LSD and LRD mechanisms?
[1] The 2020 Year In Review: DeFi (https://decrypt.co/52298/the-2020-year-in-review-defi)
[2] DeFi’s Next Big Thing: Liquid Staking Derivatives (https://cointelegraph.com/news/defis-next-big-thing-liquid-staking-derivatives)
[3] DeFi Trends in 2024: Liquid Restaking & LRT (https://tangem.com/en/blog/post/liquid-restaking-lrt/)
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2020 is the year of the latest BTC Halving and we had a huge DeFi Summer in 2020 with the birth of DEXs and projects in the DeFi sector. Investors are attracted to yield farming's high returns. The year began with a modest $700 million locked in DeFi protocols. By December, that figure had skyrocketed to $15 billion, fueled by innovations like yield farming.
Do you think DeFi Summer will return in 2024? Do you believe in the sustainability of the LSD and LRD
Of course, there is a strong possibility of the resurgence of DeFi in 2024 primed by Bitcoin halving and the coming in of new technologies and opportunities in LSD and LRD. I go over some sites on LSD and LRD and although I still have to fully comprehend the two most especially the latter, I can sense that people can be flocking here all because we all wanted some good returns for the crypto holdings we have in our wallets. Rather than have them sitting and gathering some digital dust and just waiting for their value to appreciate, why not get into the many staking opportunities already existing, one might be asking. So far, I have seen some projects introducing the LRD concept and yes most of them are getting the attention of many investors...most especially the small ones. In my view, DeFi will be here into the future and will continue to evolve in response to changing market demands and the availability of new ways and means of doing business. Let's hope that they will also be focusing a lot on security as any breach can be devastating especially to people who are trusting them with their assets.
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Do you think DeFi Summer will return in 2024?
The rise of Defi may be awaited by some of its users, as there is a lot of increasing demand for e-sports and gaming which is also an important factor in the continued growth of DeFi market revenues. The decentralized sports betting system also utilizes Blockchain technology to build a sports betting community that allows bets to be placed anonymously and securely.
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I used to think that with the increase in BTC price, Layer-1, Layer-2 or GameFi would lead the market into a new bullrun in 2024. But now, maybe we will see DeFi Summer 2.0 in 2024. I have tried to learn about Liquid Staking and Liquid Restaking, they still have the same weaknesses and unsustainability as Yield Farming but it cannot be denied that they are attracting money from investors and achieving huge TVL.
Do you think DeFi Summer will return in 2024? Do you believe in the sustainability of the LSD and LRD mechanisms?
I also think that Defi summer will return: new projects in this field are appearing with new solutions and receiving more money from funds than all other fields such as GameFi or Web3. Other projects need time to attract users, thereby creating token growth, while DeFi can turn participants' money into profit and promote immediate token price appreciation. It can be said that DeFi is where money flows in and turns into profit in the shortest time.
The crypto market is not really exciting yet, the price increase of BTC and many top coins has not made investors really FOMO. They need a new story, immediate profits calculated in numbers and DeFi will meet that need. In my opinion, DeFi summer 2024 will definitely take place as a necessity when new money flows into the market 8)
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The rise of Defi may be awaited by some of its users, as there is a lot of increasing demand for e-sports and gaming which is also an important factor in the continued growth of DeFi market revenues. The decentralized sports betting system also utilizes Blockchain technology to build a sports betting community that allows bets to be placed anonymously and securely.
Yes, I think it will get there, even though restaking has many problems and is being considered similar to ponzi because it prints money in the air to create the illusion of the total value of assets in the market. Yield last season was also not sustainable, but in the end it still grew and created the big Defi summer. LSD and LRD will be the same now, many types of projects and protocols were born to pull cash flow, then grew strongly. When the crypto market reverses, the bad protocols will disappear, only the best protocols will continue to stay in this market and become stronger.
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To be honest, I don't know much about Liquid Staking and Liquid Restaking. These are still a bit new concepts to me and need some additional review.
In any case, I was one of those who believed that the luster of DeFi had diminished a lot in the recent period, as is the case with any new emerging industry in crypto, there is a lot of hype at the beginning and then it fades little by little.
But I hope liquid staking derivatives are the next big thing for DeFi in 2024 As the article says. I'm optimistic that 2024 will be the year of crypto.
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To be honest, I don't know much about Liquid Staking and Liquid Restaking. These are still a bit new concepts to me and need some additional review.
In any case, I was one of those who believed that the luster of DeFi had diminished a lot in the recent period, as is the case with any new emerging industry in crypto, there is a lot of hype at the beginning and then it fades little by little.
But I hope liquid staking derivatives are the next big thing for DeFi in 2024 As the article says. I'm optimistic that 2024 will be the year of crypto.
Well for me there really is a higher chance that it will be the next big thing because we are just in the beginning of the first quarter of the year 2024. We still have a long way to go and I think with that time frame everything about defi will soon be on the spotlight again.
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To be honest, I don't know much about Liquid Staking and Liquid Restaking. These are still a bit new concepts to me and need some additional review.
In any case, I was one of those who believed that the luster of DeFi had diminished a lot in the recent period, as is the case with any new emerging industry in crypto, there is a lot of hype at the beginning and then it fades little by little.
But I hope liquid staking derivatives are the next big thing for DeFi in 2024 As the article says. I'm optimistic that 2024 will be the year of crypto.
I also spent many hours reading about LSD and LRD, they really have a crazy loop that generates multiple profits for investors, while also making this model much less sustainable. much, but at least it's not Ponzi. I do not invest in LSD and LRD because I cannot tolerate too much risk.
However, we are seeing the emergence of projects in this sector, and their TVL is increasing rapidly. I will not be against any trend that is helping the crypto market attract new cash flows to create overall growth in 2024-2025 8)