For me it will not affect the market too much if the projects listed on the exchange are good projects and also carry a long future, but it is quite sad if the projects just take advantage of the hype defi and they are able to enter the exchange at no cost. Even though their project is nothing special. Many old projects that have been developing suddenly lose out to new projects that use the name defi to become famous.
Reality is happening now, those old coins who have good feature and still developing are now losing supports due to this hypes.
Investors chooses to invest and take the risk after seeing the potential of gaining from this hypes, there's impact since there are more
options and there are more hypes to follow, be very vigilant in choosing which project to invest especially with DeFi kind of projects.