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NFTs Outperform DeFi - CRYPTO FRIDAY
Hey DEFI TIMES community,
NFTs are in the spotlight, while DeFi keeps lagging! Don’t believe me?
Just look at the numbers: Popular DeFi tokens have been struggling to keep up with the price action in the NFT space. Since February, NFT-related tokens have significantly outperformed DeFi related tokens.
A good example is the price performance of AAVE vs. Rarible. Rarible is a popular NFT minting platform, which has been killing it in February - both in terms of price and usage.
Source: Messari (https://messari.io/)
So why is DeFi not getting the attention it deserves? Well, the answer is simple: NFTs are way more suitable for the masses.
While DeFi’s narrative is hard to wrap your head around, everybody understands the value of collectibles - unique objects like rare stamps, game items, Pokemon cards, etc.
This is not the case with DeFi. Most of us live in developed countries where the need for decentralized financial services simply doesn’t exist. We all have bank accounts, and therefore access to the financial system.
The value of DeFi doesn’t come naturally to us!
Don’t get me wrong: This fact makes me even more bullish on DeFi! NFTs are close to reaching a potential bubble point, while DeFi...is not!
NFTs are grabbing all attention in the crypto space; however, it’s probably a bad idea to forget about DeFi just yet.
We are still early!
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1inch has released their V3 version, which will ultimately lower transaction fees to an absolute minimum!
Aztech has released its privacy-focused zk-rollups on mainnet!
Argent announced that they will support zksync (a type of zkrollups) in summer! Rollups are coming!
AAVE AMM market
Aave has released its AMM market meaning that you can now use LP tokens as collateral, including major Uniswap trading pairs and several Balancer trading pairs.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.