DeFi Tokens On A "Silent" Surge
DeFi Time?
Decentralized finance (DeFi) is one of those Crypto niches you either love or hate. There’s not much place for neutrality, as investors usually fall into one of two camps. Those who are attracted to the high returns, and then those who are discouraged by the volatility. Ironically, the deciding factor in both cases comes down to knowledge and experience. Those who find the DeFi space exciting and rewarding are generally quite knowledgeable in regard to the space, as well as in their approach to strategy and execution.
Then, on the other hand, there is the group who doesn’t quite have a handle on how to appropriate and execute an effective DeFi strategy. Essentially, they make the same ignorant blunders time and again. All markets are cyclical, to a degree. However, Crypto, and especially DeFi… are primarily dominated by cyclical behavior. Making a bad decision when it comes to DeFi and its inherent behavioral market formations can be fatal. There’s an enormous difference when it comes to a floating loss of 30%, as opposed to that of 98%… and yes, this is not an exaggeration.
The DeFi sector really does inflict this level of pain on the unschooled. On the other hand, making the appropriate decisions at the appropriate time can be quite the opposite. Observing Defi in this current market reveals a number of tokens that are actually performing phenomenally well. I have written a number of DeFi-related articles over the past few months, as it seemed an opportune time to begin at least thinking about DeFi again. It seems the market was thinking along similar lines.
Strong Movers
Taking a look at the price action of a select few DeFi tokens over the past 30 days reveals a rather impressive scenario. Compound Finance (COMP) has experienced an enormous rally and is up 156% in a 30-day period. While everyone has been focused on XRP, COMP has silently outperformed the current “darling” of the market.
It’s an impressive move… and extremely profitable, especially with a little modest leverage.
Synthetix Network (SNX) has also had a fairly good run and is up more than 70% during the same period. In actual fact, much of this move has taken place this week, making it even more impressive.
These are the moves you want to identify, as a trader. Quick and to the point. A great intra-day trade here from Synthetix Network. As I have mentioned recently, accumulation for DeFi exposure, as well as altcoin exposure is in its final stage.
Final Thoughts
Yes, the remainder of this year is the final boarding call. In terms of accumulation… at this point, crashes cannot be equated with those of 2022. They are simply discounts… and a final “splutter” before the Crypto rocket takes off. The crashes of 2022 were in succession and were part of a more severe and cyclical correction. This doesn’t mean that the market is “safe” from corrections for the remainder of the year.
What It does however suggest is that the market has pivoted and that corrections should not be interpreted as adjustments in trajectory, but rather as dips to be utilized as buying opportunities. These are of course my own opinions and interpretations. It’s good to see DeFi catching a spark. Hopefully, there is a lot more to come. See you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
