“DeFi is the Most Painful Trade of the Year” says VC Veteran Jason Choi

Mr. Jason Choi, a member of Forbes’ 30 Under 30 list, co-founded Spartan Group, the APAC region’s most successful Web3 VC fund DeFi, and expressed his thoughts on the current “bottom” of the Crypto Winter.

New-gen The bear market has destroyed DeFis

According to Mr. Choi’s figures, all forms of utility and governance assets related with the decentralized financial segment have been hit the hardest by the recession.

They peaked in May 2021, not November 2021, as Bitcoin (BTC) did, and their bear market lasted 400 days instead of 207 days. Even the most prestigious DEXes had their assets collapse by 90% on average.

At the same time, “new DeFis” or “DeFi 2.0” protocols, such as Redacted Cartel (BTFRLY), Olympus (OHM), and Wonderland (TIME), are hit even harder: they’ve lost an average of 98.5 percent.

When compared to the ATH, some protocols in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Saber Protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost over 99%.

Is the ATOM ecosystem a refuge of safety?

Layer 1 protocols (L1) have historically had lower volatility than DeFi coins. With losses of 63.5 percent and 65.4 percent, Ethereum (ETH) and Tronics (TRX) are the two most stable assets.

Coin that has been overhyped MINA, which gained news after its post-launch surge, is the only Layer 1 protocol to lose more than 90% of its value.

Mr. Choi further said that the Cosmos (ATOM) ecosystem, a complex cross-chain architecture, exhibits “defensive” price performance despite the market turmoil.

The investor is unsure of the specific origins of such a situation, which can be linked to VC funds’ lack of involvement.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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