Ethereum’s DeFi space has fallen off dramatically over recent weeks due to weakness in the markets. Top coins pertaining to the space have dropped by over 30-40% from their recent all-time highs, resulting in market carnage.
Not to mention, some crypto assets in the space have lost even more than 40%, plunging as capital floods into safer bets such as Bitcoin.
There are still many prominent supporters of DeFi, though. For one, the Winklevoss Twins, the Bitcoin billionaires behind the Gemini exchange, recently threw their weight behind DeFi in a series of messages.
The Twins said that they see decentralized finance as a revolution. And unsurprisingly, they aren’t alone in thinking so.
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Winklevoss Twins Talk DeFi
Despite the ongoing correction, the Winklevoss Twins are throwing their weight behind DeFi more than they ever have been before. Cameron Winklevoss DeFi is not the same as the 2017 ICO craze. Back then, money was raised on shitcoin white papers written in a coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.:
“DeFi is not the same as the 2017 ICO craze. Back then, money was raised on shitcoin white papers written in a coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.”
DeFi is not the same as the 2017 ICO craze. Back then, money was raised on shitcoin white papers written in a coffee shops. DeFi is already live and working in the wild. Billions of dollars are at work earning positive yield. This isn’t hypothetical vaporware, this is real.
— Cameron Winklevoss (@cameron) September 22, 2020
The optimism was echoed by Tyler Winklevoss, who made a similar comment to his brother about the importance of the yields offered in the DeFi space.
“Yield is something you used to earn from your bank. Now you earn it from a smart contract. The #DeFi revolution is upon us…”
Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward
Near-Term Peak
Some think that DeFi is reaching a near-term peak, though.
Crypto analyst “Theta Seek” noted that there are a number of fundamental trends suggesting that the growth of the decentralized finance space will stall in the near term. These include but are not limited to:
- Risk of funds being lost caused by poor user experiences and tools
- A loss in the momentum of capital entering this crypto market segment.
- Regulatory pressure as governmental agencies eye the vast amounts of capital sloshing around in DeFi, along with the potential for hacks and bugs.
Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch
Featured Image from Shutterstock Price tags: ethusd, ethbtc, btcusd, btcusdt, xbtusd Charts from TradingView.com Winklevoss Twins, Bitcoin Billionaires, Think DeFi is a "Revolution"
