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What this Crypto Bull Run means for EOS and other Defi Blockchains
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.