There has been one in the past few months Entry of new funds into cryptocurrency markets, from sales of tokens with excessive demand up to 100% price gains for tokens like Cardano (ADA), Chainlink (LINK) and VeChain (VET).
But This heralds the start of a new bull market, or is it just another bubble waiting to burst? A bit of both, according to a thread Posted on July 24 by Simon Dedic, co-founder of Blockfyre, a cryptocurrency research firm.
Big bulls are back
The current climate in the cryptocurrency scene is reminiscent of the ICO boom 2017 in many ways. Many new projects emerge and token sales expire within a few hours, especially in the area of decentralized financing.
Already established or at least the strongest projects show a three-digit increase in the value of their tokens, which has led to Chainlink being called the “Tesla” of the cryptocurrency. Speaking of Tesla: Leader Elon Musk has taken on Dogecoin (DOGE) and perhaps the most unlikely champion, the social media app TikTok.
The cream always rises
Dedic agrees with the last one DeFi Fashion remembers ICO Mania in 2017, and think which is likely to develop in a similar way:
“It’s a narrative. There are many interesting concepts emerging that could change the financial sector. However, many useless cash resources will do the same.”
The strongest projects will survivehowever and dedic considered that the current money flowing in Chainlink and VeChain is confirmation of this:
“Both projects were in 2017, they had a first phase of propaganda (like what DeFi currently has) The bearish time came and they calmly concentrated on building their product“”
Of the current DeFi projects, DMM Dao, Aleph, DecentR and DeFiPie were the ones that sparked Dedic’s interest. It remains to be seen whether they will all be successful in the long term, but “All of these projects have very interesting approaches to influence the decentralized financing area“”
FOMO is on the move
With new money in the market, Dedic considered as We will see another marked bull market that has already started, albeit slowly.
“At the moment, most of the money is polite and cautious due to the recent bear market. But [la gente] has started to start it less cautiously. “
What follows is likely “a big wave of retail FOMO that will pump the entire market“”
With a 4,000% profit within a day for a token whose creator has described it as “worthless”, this may be closer than expected.
However, This will inevitably cause the bladder to burst againAccording to Dedic, caution should be exercised, as is often the case in the cryptocurrency world.
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