Move Over JPEGs! DeFi is Next :)
Alright bois. Today seems like the perfect time to talk about my bullish sentiment towards DeFi as the JPEG meta seems to be having a little retracement. Let’s address something about JPEGs before we dive into today’s topic though.
JPEG Retracement
Shoutout to @spr3adsh33t on Twitter for these stats.
As you can see we’ve been having a 3 day retracement for the broader NFT space, and today especially. It makes sense that we’re having a pullback the last 3 days since we’ve been running up pretty high. Today seems a little odd as $ETH breaks very critical levels and we’re on our way to visit $4k ETH. I guess some people are taking profits, and some are lowering the floor to equate the fiat percentage of ETH’s hike up? Regardless, this is defintely something interesting that we need to pay attention to. This is especially important if you’re holding these NFT bags. I had previously thought that due to Sotheby’s auction of Bored Apes tomorrow, we’ll still have some time for NFTs to continue to run up. I guess we’ll have to play the waiting game and see where that auction and mainstream media’s attention will take us.
JPEG Interest
This is a chart from Google Trends comparing the search volume of Ethereum and NFT. You guys can’t see it on the chart, but we peeked out at “40” for NFTs in May, and now we’re at “33”. So we’re getting close to the attention levels of peaked interest in May. I want to reiterate that I’m some ex-wallstreet slave turned degenerate bum who started to trade cryptos 10 months ago. I really like that some of the Twitter folks are saying that you trade cryptos by understanding data, and you trade NFTs by understanding culture. I for one…am a data guy. I’m an uncultured swine. I mean…can someone please explain Kanye’s Donda to me? I don’t really get it 😂. The last time I understood Kanye’s work was when I tripped hella hard listening to the Ye album on one of Hawaii’s beaches. I mean shieeet…I thought the clouds were communicating to me and Kanye’s lyrics and melody were showering me with love and acceptance (Don’t do drugs kids💀). Anyways, I’m doing my job and presenting the DATA to you. You can make your own decisions regarding what you’re going to do with the data. As for me? I’m still holding onto most of my JPEGs. Like I said in the last blog, even if we have a retracement in NFTs, I still think there’s a good chance that we’ll have another run of NFTs in the near future i.e. 2–3 months from now (Will explain in further detail later).
Speaking of data…let’s inspect some of this shit in the Defi sector.
DEFI September?
We’re currently sitting at $128 billion market cap for Defi and we peaked at $150 billion briefly in May before the market decided to burden us with some heavy bags 😥. So…can someone explain to me why is it that Defi’s market cap had dropped by more than half from peak to trough, and have since then climbed back up to near peak…and what the fuck am I looking at here?
Yup! None of these coins are even near its peak in price just yet. I also want to show you this chart that I made in 2 minutes. This is purely arbitrary numbers because I couldn’t find a chart to convey what I want to say, so I figured I’ll just throw some numbers in excel and make this graphic. LMAO
My point is I think the defi sector is undervalued right now. So yes…it’s true that Defi coins pumped really hard in April/May, but that’s not what we should equate as “true value”. Additionally, wtf even is “true value”? Value investing is such a boomer concept…I mean…if Warren Buffet can start flipping jpegs and 100x his investment in a month, then maybe I’ll listen to what he says today. But clearly, that’s not the case…at least not yet. Regardless… as traders, what we want to do is buy-low sell-high. If we can buy when it’s undervalued and we can sell when it’s overvalued…well…insert Doctor Evil meme!
Enough with the silliness…to kind of tie back to what I was saying earlier about NFTs. The crypto space has monthly flavors and favorites. Play-to-Earn dominated July and NFTs dominated March and August. What about DeFi you ask? Well…DeFi dominated last summer, this January and April. It’s only fitting for the sector to roar back and give that middle finger to the bears out there 😤. I truly believe this is the case because we’re seeing activity picked up in the DeFi sector in general, and this is the calm before the storm. If you’re curious, definitely look into the defi sector of $SOL, $FTM, and $AVAX. You think these coins were just pumping for no reason? Nah fam, this is DeFi bulls buying shit up and yield farming (Maybe with the exception of $SOL…consider them a dual-pumping coin due to NFT & DeFi). Riding these trends have been a huge determining factor of how I’ve made most of my gains the last 10 months.
Ultimately, to tie both subjects of NFTs and DeFi together… if you believe that crypto market in general will last till December or beyond, there’s no reason to doubt that NFTs and Defi will have one final run.
Notable Picks
I want to point out 2 coins that I’m very bullish on and have allocated a sizable portion of my portolio to.
- $Quick — Quick is the number 1 Dex on the Polygon ecosystem as well as providing yield farming mechanisms. It was recently listed on Coinbase as well. While I’m not as big of a $Matic stan as Dixon is, I’ve actually poured a huge amount of capital into Quick the last month. I’ve been accumulating a shit ton of Quick. I think a month ago, I had maybe 10–15 quicks…I now have about 66 of these gems. In addition, there’s a lot of bullish news coming out of the Polygon system. For example, Coinbase plans to intergrate them, and they also acquired Hermez Network to merge the 2 chains (First full-blown merger of 2 blockcahin networks). I also know that both $Quick and $Matic had its price run ups the last month, but I still believe there’s a lot of upside potential for $Quick.
I mean…look at this MC/TVL Ratio. It’s at 0.22. That is very undervalued compared to Cake’s 0.88, Uni’s 3.07, Sushi’s 0.55.
2. $Ray — Raydium is also the same play as Quick, but on the Solana network. I think we all know Solana has had its fair share of attention recently. About a week ago, I decided to allocated roughly 80% of my funds from the Binance Smart Chain to the Solana network for a couple of reasons. First of all, BSC has been pretty sketchy. They won’t cooperate with government officials, there’s people on YouTube and Reddit everywhere spreading FUD, there’s…I can go on, but they’ve been sketchy. I really don’t want a legal hammer to come and strike BSC and the price tumbles from there, so I’ve been stressing about it for months. I’m glad to say that I’ve finally found a replacement to yield farm at peace in the Solana network, and Raydium is the way to go. I would also like to point out that this doesn’t mean $BNB and notable coins such as $Cake won’t do well interms of price action. All I’m saying is that I’m uncomfortable for being in it because it feels like a ticking time bomb to me, and I don’t know when that shit will explode.
I also know that both Raydium and Solana has run up massively the last 2 weeks. I got into Raydium at $8.43, so anything above that price range seems expensive to me. However, I still have a very good outlook on Raydium and I think there’s room to run more. In the aboslute bullish case, Solana can overtake BNB as the #4 coin this bull run…and Raydium will be sitting pretty.
That about concludes it. I am waiting for my @admbombsquad bombs to reveal on OpenSea, so I’ll go ahead and do that. GLHF fellow Degens :)
P.S. This blog started as a journal/suggestion thing for my IRL friends, but I’ve grown a little bit in followers this last month. You’ll notice that I’ll randomly name drop my friends in these blogs because I’m directly addressing them, and it will continue to stay that way. However, I also want to say thank you for the new people who are reading my blog and following me on Twitter. We can all be degens together and ape into some stupid shit. :)
Looking forward to seeing you guys in the next one.
