Blockchain researcher Chris Burniske, who has authored a majority of the token evaluation models, explained why we should avoid a Bitcoin (BTC) obsession and whether the DeFi segment is worth taking a look at.
Bitcoin (BTC) is great, but DeFi is just getting started
Mr. Burniske commented on the calculations of a trader who highlighted the insane mid-term performance of DeFi instrument native assets. Aave Protocol (LEND), Kyber Network (KNC), Loopring (LRC), Bancor (BNT), Maker DAO (MKR) and Melon Protocol (MLN) were mentioned; every asset demonstrated triple-digit gains over the past year.
The trader admitted that he was disappointed in the pale performance of Bitcoin (BTC) and started feeling FOMO for the upcoming DeFi asset run.
Mr. Burniske announced that Bitcoin (BTC) is still great, but it should be estimated without obsession. And, in general, he agreed about the prospects for DeFi assets.
Chris Burniske believes that this segment is in the nascent stage and the brightest days of its performance are still ahead. He claims that we shouldn't miss this lucrative investment opportunity as he:
Would hate for those who’ve been here the whole time to miss the boat
Much more natural catalyst than ICOs
It appears that these estimations resonate perfectly with the words of Three Arrows Capital CEO Su Zhu, who is also the author of the Deribit Insights series.
Mr. Zhu, who masterfully predicted the Bitcoin (BTC) performance after the last bearish attempt to push it below $9,000, noticed two differences between the influence of ICO euphoria on the Ethereum (ETH) price and the possible effect DeFi growth has on it.
He emphasized that the decentralized finances sector is accretive and sustainable at the same time. ICOs totally lacked both characteristics.
But the common narrative still underestimates the power of DeFi and its huge possible influence on Ethereum (ETH) price movements, Mr. Zhu admits.