DeFi has been on fire recently. Your favourite tokens have all skyrocketed to levels not seen in months, or even years.
Compound has launched the COMP token on exchanges and its price has pumped like it is 2017 all over again.
We also do see yield hacking technics reaching new highs from BTC pools to COMP farming and so on.
In the same time, Gas prices have reached dramatic levels and represent a big pain for everybody involved in DeFi, from small users to VCs, which fund the costs associated with smart contracts interaction of DeFi protocols.
So are we in a bubble yet?
We take a look at DeFi user trends of big successful DeFi projects: Synthetix, Ren, Aave and Numerai.
Synthetix - SNX
Daily active users have been on fire.
Average daily active users: 280.
Ren - REN
The growth of active users is just getting started with the RenVM mainnet launch.
Average daily active users: 120.
Aave - LEND
Aave has witnessed some stratospheric rises in daily active users.
Average daily active users: 175.
Numerai - NMR
Numerai is consolidating after an impressive growth in active users, certainly hit a bit with gas prices.
Average daily active users: 50
When looking at active users, we see that DeFi top projects are not in a bubble at all. User growth is encouraging and demonstrates that DeFi is only started.
Even if gas prices are high at the moment, user growth continues. It is good sign for the future.
On the valuation front, token prices have skyrocketed in recent months so we would be a little cautious going forward. For new participants, this is not the time to invest all your life savings at these valuations.
For those who bought some months ago, the ride has been amazing.
Thanks for reading
Why become a premium subscriber?
If you are willing to bet on the future success of DeFi and cryptocurrencies, this is the subscription you want to take.
We explain our thesis in a plain and simple language, based on facts, trends, crypto use cases, token economics and valuation models. We do not use technical analysis to make calls. We invest based on fundamentals.
It costs only $25 a month.
And you get:
Our watchlist: this is the list of crypto projects we are currently looking at.
Our watchlist of potential scams or doubtful projects.
Cheatsheet and tips on how to find great crypto projects and detect scams.
Follow ups on investments.
Archived articles: Full access to Secret Salsa archive.
BONUS: portfolio management tips, hedging strategies and learning tools.
Questions on the subscription?
Please contact us via Twitter: @SecretSalsa_
You understand that no content published on this website or on our social media channels constitutes a recommendation to buy or sell any security or cryptocurrency. You acknowledge that the content of this newsletter is for informational purposes only and does not constitute investment advice. Investment in cryptocurrency involves large risks and you are solely responsible of your investment decisions and should consult a financial professional to assess your own personal and financial situation. Secret Salsa Crypto Investment Ideas’ newsletter is not a registered investment advisor or an investment company.