I have been reading lately that DeFi it's a bubble that's bursting, but I think that this is far from reality.
People get very nervous when prices go down. And in this ecosystem when prices move, they tend to do so strongly in both directions.
Many of the DeFi projects have lost more than 50% of their value from highs. In fact, you can track the prices in messari.io very comfortably, I leave you the link here.
This is the first time I use Messari.io, I think this website has some cool analytics that can help you track the price evolution better than Coinmarketcap or Coingecko. You should definitely take a look!
There is 10 Billion volume in DeFi right now, that is really LOW!
To put things in perspective, this is the total Cryptocurrency Market Capitalizazion accorting to Coinmarketcap:
The global crypto market cap is $335.22 Billions
Do you really think that this is a bubble?
This market is really new, we are really early and things should evolve a lot in order to make DeFi accessible for regular users. That is true. With all of this uncertainty a lot of projects will fail, but this is not a bubble, this is just the process.
This is how things work in real life. Some projects fail, some survive, and just a few grow exponentially. You should be prepared for that.
Periods like this are NORMAL:
If you just think at HOW BIG THE DEFI MARKET COULD BE, just look at Gold, Stock market, Real state... All of this can be traded via Smart Contracts, and this markets are counted in Trillions.
- Gold: 10 trillions.
- Stock Market: 90 trillions.
- Real state: 280 trillions.
The sky is the limit!