For the past year, Decentralized Finance (DeFi) has become the buzzword, with record-breaking growth through multiple industries. DeFi’s Total Value Locked (TVL), or the total ETH locked into DeFi networks, has risen from just under $700 million at the start of last year to over $50 billion today.
A high-profile analyst and trader who nailed the timing of the correction across the crypto markets, is now predicting that DeFi will soar to greater heights after the market-wide correction.
In a new tweet, Altcoin Psycho, a crypto analyst, tells his 194,600 followers that he’s looking at the decentralized finance (DeFi) sector as a potential winner of income turned out from irrelevant altcoin ventures.
DeFi Season 2021
While few topics in the blockchain and crypto worlds are as hot right now as DeFi. It’s being heralded as the future of not only blockchain but finance as a whole, with new developments leveraging its strengths every day. Market Demand for stable coins spiked in the first half of the year, as crypto users strived to safely park their assets. Then, as markets rallied, the DeFi sector jumped even higher
Altcoin psycho believes that capital will start flowing out of dead ventures and back into DeFi in the near future. Which may in turn offer the impression of being a top, but it will not. A lot of red will be seen, but it will be in the form of rebalancing. When this happens, he expects the capital to flood back into DeFi, and that time there will be a surge in the number of DeFi ventures.
In terms of Bitcoin, the crypto strategist claims that the bull market hasn’t ended yet.
Looking at Ethereum (ETH), Altcoin Psycho predicts an incredible bounce and a fresh all-time high for the leading smart contract network.