One more week in crypto has passed, and we see how quickly reversals are possible within the overall crypto marketplace in general, as Bitcoin begins to potentially make a new higher high, possibly reversing the recent downward trend, and as more people become aware of that fact, the crypto market begins to come alive again with the possibility that the bull market is still in full effect. But personally, I have often found what can far too often get lost in the exuberant focus of all the new highs, is ultimately what the improvements that crypto as a whole needs to make collectively. In this article I intend to go over a recent article I read called “What the Most Recent Crypto Bull Run Means for DeFi”. And I will give you my opinion on what I believe this signifies for EOS main-net and crypto in general, link to the source article will be below, OK now let's get started.
To summarize and paraphrase, the article first begins with, from late December to mid-April, Bitcoin gained nearly 230 percent. "Darn it, Elon," was all crypto traders could muster after Tesla's CEO announced that the company would no longer accept Bitcoin as payment for Tesla products, claiming that Bitcoin's negative environmental impact played a role in the decision. The market was widely believed to have been manipulated by him in order to purchase more at a lower price, with many claiming that there was no way he could have been unaware of the market's carbon footprint.
It didn't matter what he had in mind; the market dropped by 40%, and traders were left holding the bag. Early in cryptocurrency's existence, few people had a clear understanding of what these new digital assets were, let alone how much potential they held. For the average Wall Street broker, bitcoin (the world's first and currently leading cryptocurrency) could have passed for a penny stock or a type of trading card in terms of its value and utility — even during the period leading up to the 2018 market crash, when Bitcoin first gained widespread attention and became popular.
During this well-known ascension and subsequent post-collapse period, cryptography began to permeate the public consciousness and establish itself in the hearts of the dark web and Reddit users alike. Now that the big fish have arrived, it's time to start a new game. With well-known investors such as Andreessen Horowitz, Michael Novogratz, and Bain Capital Ventures joining the DeFi fold, developers must rethink their product in order to make it more appealing to the influx of sophisticated investors looking for more serious opportunities within the DeFi ecosystem.
At the moment, the Bitcoin blockchain can only process five transactions per second. VISA, on the other hand, performs 1,700 transactions per second on average. The disparity is enormous. Many other cryptocurrencies have entered the market since Bitcoin's launch, including Ethereum, which is currently the leading blockchain network, EOS, which is powered by Block-Ones EOSIO technology, and the Binance chain, which was created by leading cryptocurrency exchange Binance, Polkadot, which aims to be a second layer scaling solution for the Ethereum blockchain, and Cardano, which is named after Renaissance mathematician Gerolama
Despite the influx of new players and their exotic network names, it appears that the majority will be unable to compete on the same scale as VISA. Companies and projects such as ThorChain and LiquidApps are attempting to shift the existing paradigm by bridging the gaps between these siloed networks and promoting what they refer to as "liquidity mining," respectively. Therefore, LiquidApps has made great strides in bridging the gap between EOS and Ethereum.
However, despite ongoing efforts and some community optimism, the broader DeFi ecosystem continues to be fragmented and difficult to navigate. In order to make a difference, more entrepreneurs will need to follow in their footsteps. Because of the current constraints, developers and network operators will need to prepare for a much larger fish to come along.
Institutional investors and fund managers who enter the market will expect an infrastructure that is capable of handling higher volumes of transactions while also providing the necessary liquidity. More importantly, mainstream retail investors will want a piece of the action as well, which will necessitate the development of a strategy for them as well. From the point of view of the user, business empires such as Google and Amazon created products that were not only in high demand, but were also easy to use for their customers.
However, it is difficult to say the same about most DeFi projects, whose developers are frequently trapped in their own perspective rather than the perspective of the end user in question. In comparison to mainstream user interfaces of large corporations such as Walmart and Google, whose user interfaces (UX) are designed with the user in mind at all times, DeFi projects fall significantly short of the mark. Furthermore, according to a Cardify survey, only 16 percent of cryptocurrency investors are fully aware of cryptocurrency and the potential it holds, indicating that educational initiatives are lagging behind.
However, part of it stems from the accessibility issues that DeFi projects are experiencing, as their interfaces are difficult to navigate and are generally unintuitive — let alone educational in any manner. The Tax Rules for Purchasing and Selling Bitcoin and Other Cryptocurrencies is a related article. In the same way, institutional investors will need to be considered; they will be looking for DeFi applications that can be customized to meet their more sophisticated requirements. Now is the time for them to pause and consider how they can improve their situation.
In my opinion, the big takeaway for me in this article was, and I quote, "Institutional investors and fund managers who enter the market will expect an infrastructure that is capable of handling higher volumes of transactions while also providing the necessary liquidity." To me this signifies the crypto market is ripe and ready for a new kind of defi. It's clear to me the market is ready for Pro-Fie. As the article stated earlier, institutional investors are here, and they are not going anywhere. However, currently within the crypto industry, there is not a decentralized finance project that fully caters to their needs. Block-One’s upcoming project, Bullish, I believe, will likely be the first to fully cater to institutional investors and, as a result it will likely win a significant portion of institutional market share.
I find it very interesting that they mention the crypto silo bridging initiatives like ThorChain and, of course, our very own "LiquidApps" that provide liquidity between chains, are providing a much-needed service for the entire crypto ecosphere. Personally, I believe this is just the beginning of such initiatives. Crypto blockchains that offer ease of use and high programmability will have the easiest transitions to integrate such initiatives in the future. This is why I believe EOS main-net, related projects Bullish and Liquid-Apps, will help lead the way in the new direction that crypto is ultimately heading, inter blockchain communication is the future for blockchains, and Pro-Fie is the future for institutional integrated decentralized finance, and EOS main-net projects are at the forefront of helping facilitate this transition in both areas of interest.
To all EOS holders, EOS related projects are leading the way to the future.
Great article my friend :)
Bullish exchange will shift the game for EOS holders in the near future when it is officially launched later in 2021. We are closing to the end of this sideways movement in EOS that has been going on for 3 years and it already had its toll on many OG EOS investors.
If you notice the big media outlets are starting to give some attention to Bullish including Financial Times and Bloomberg which is a good sign indicating that institutional investors have put Bullish and EOS on their radar to invest in when they are 100% sure that Bullish is launched successfully. In fact that day is very close to us since BlockOne launched Bullish exchange pilot test two days ago which means the real launch date is very close.
Also, recently, the common FUDs around BlockOne were getting debunked. First they said BlockOne was not doing anything and just stole investors ICO money. Then it got debunked when Bullish exchange was announced and the promising features it will have and how EOS blockchain will be used for cryptographic validation of transactions using EOS public block chain. Moreover, prominent billionaire investors are backing and funding Bullish including Peter Thiel, Alan Howard, Louis Bacon, Richard Li, Mike Novogratz, Christian Angermayer, and Nomura.
Second FUD about BlockOne purchasing tokens on the primary market was debunked after Clifford Chance LLP supported by PwC Hong Kong and DMG Blockchain Solutions released a report stating that BlockOne was not engaged in any activity either involving intentionally purchased tokens by any means during the token sale or entered into any arrangements with third parties to do so on their behalf.
Overall, The fundamentals are looking great for EOS. FUD is gone. Technical Analysis indicates strong continuation of the bullish trend that started earlier this year, towards new all time high.
Thank you again for the great article. keep it up I enjoy your videos and articles :)
The simpler it is the more chance that it will attract more users. It applies everywhere, not just Google or Amazon if you look at most of the popular things, they are simple to use. We can also refer to volume of Bitcoin, before the known crypto markets it was not easy to buy and sell Bitcoin but now the transaction is one click away even in our mobile phones. There are many factors that had impact on the price of Bitcoin, but I believe accessibility is one of them.
I think the time of DeFis didn't come yet, considering their volume and the reasons stated in the article. However, they promise us a better future, and I believe we will see it soon or later.
I would love to see EOS participating in the improvements of DeFi and attracting more users in terms of simplicity. Bullish has a lot to accomplish.
Thank you for the article, and before you say it, GO EOS!