Quote from: Beparanf on April 07, 2023, 04:22:03 PM

Quote from: OcTradism on April 07, 2023, 02:13:40 AM

With collapses of Terra, DeFi 2.0 model shows their weakness and do you think those tokens will be recover to their all time highs in 2024 bull run?

The answer is NO. Simply because these tokens start from small circulating supply then later own increase until the max supply was reached. All start-up project has the tokenomics of releasing the total supply in tier throuh specific time table. This token manage to reach all time high when their token supply is at the lowest level. Right now most of them increased there total supply to optimum level which is the main culprit for the continuous price decline.

Unless this project has a deflationary mechanism to decrease the total will make reaching ATH again possible. DeFi hype is almost over due to scarcity of liquidity that coming from VC money. Banks are struggling which is the main source for capital so I doubt that DeFi will be prosperous again without the liquidity that they need.

That is the trouble most of the time for these because there aren't enough buyers to cover the increase of the supply make any sense. ETH is also like that but it has enough buyers to make it make sense, because a lot of people keep buying it even thought it is unlimited supply.

In order for this idea to work, you have to have a lot of buyers, even during the bear period, there should be enough to make sure it doesn't bottom out at the near zero levels, it should keep its rank at least on cmc for example. ETH did, it is unlimited supply and bear happened and it stayed at second, because it's a good one. Pancake was the one I had so much belief in, and sad to see not doing so well as much as I expected it to do.