DeFi on Ethereum had a big correction after things got really frothy and fees on Ethereum skyrocketed. For about 2 months DeFi took a back seat as everything else was pumping. During those months we saw tons of pumps from different categories, while DeFi & ETH had a 35-60% corrections vs BTC which is quite large. What we need to note however is that DeFi had gone up over the summer while the rest hadn’t. Also part of DeFi bottomed vs BTC in November while the rest bottomed in January.
Now clearly fees will be an issue again, but the influx of new people is going to push DeFi much higher. Not only the influx of new people, but people selling their Coinbase stock and we need to remember Coinbase went heavy on DeFi tokens over the last year with lots of listings. To me this is a key rotation (from CEXs to DEXs) and includes not only Coinbase stock, but also stuff like BNB, FTT etc.
AAVE, SNX , BAL, COMP, MKR , YFI are the larger ones which have also been lagging to an extend compared to others. All of those are listed on Coinbase. UNI hasn’t been lagging and its UNIBTC chart looks like a gigantic pattern. Now SUSHI and CRV got recently listed on Coinbase, so they have the potential to do very well given that there will get more buyers this time around. BNT has a quite special chart and its price action seems controlled by a bigger entity. GRT is a special one as it has had several big pumps and looks ready for its next big one . LRC has been a massive lagger too and it is pretty cheap compared to others so potentially cheap to own here after such a big move.
The DeFi index doesn’t show the full picture yet because it has weird mix of coins, however the breakout is very clear. This could be very similar to what happened earlier this year in terms of magnitude. We are 3.5 months into this alt season and we are getting breakout after breakout. Rotation from one category to another with no signs of weakness as a whole. Yes some look weak, yes some haven’t done well… Yet the market as a whole has been pushing higher and higher. Ethereum is also looking very strong and healthy so it can push much much higher from here over the next few weeks. I can see the whole altcoin show going up until the end of June, so be prepared for big stuff.
I think we in Phase 4 or Phase 5 of this alt season. Given that we are going back into DeFi assuming this pump won’t fail or that others don’t do better than this market sector, we are probably in a new phase. We are potentially 60% into this alt season and there is a lot more to it!