Good afternoon!
Lately, I’ve been feeling more and more that:
DeFi may be becoming the next major flow of capital.
Why?
Because earlier the market was hyping L2, and what it was really trading was scaling, TPS, and ecosystem growth.
But once those stories have run their course, capital will eventually return to a more realistic question:
Who can actually generate real trading volume and real revenue?
That’s also why I’ve recently started taking another look at HYPE, AAVE, UNI, and JUP.
Among them, the one most worth discussing is definitely HYPE.
Hyperliquid itself is a very typical “trading-driven protocol.”
If market volatility keeps expanding and on-chain derivatives trading volume increases, protocol revenue may rise along with it.
So HYPE’s logic is a bit different from that of a normal public chain token.
AAVE is a completely different kind of play.
It doesn’t rely on memes, nor on short-term hype, but is instead one of the more mature leaders in DeFi lending.
If the market later starts to revalue “revenue-generating protocols,” older projects like AAVE may actually be rediscovered by capital.
UNI is more like infrastructure.
Its biggest strengths are its brand and liquidity.
JUP, meanwhile, is one of the representatives of the Solana ecosystem.
So these four coins actually represent four different DeFi logics:
HYPE = derivatives
AAVE = lending
UNI = DEX
JUP = Solana DeFi
That’s also why I don’t really want to look at just one coin recently.
Because if a DeFi rally really does emerge, it may ultimately not be one project surging alone, but the entire sector being revalued together.
So next, I’ll be focusing on one key metric:
Whether real on-chain trading volume keeps growing.
If only the coin price rises and on-chain data doesn’t keep up, then it may just be speculation.
But if price, TVL, trading volume, and protocol revenue all grow together, then it’s a completely different story.
So my current view on DeFi is:
It’s worth watching, but don’t chase it just because it pumped hard for a day or two.
The most comfortable opportunities are often when the market hasn’t yet formed a consensus expectation.
Lately, I’ve been feeling more and more that:
DeFi may be becoming the next major flow of capital.
Why?
Because earlier the market was hyping L2, and what it was really trading was scaling, TPS, and ecosystem growth.
But once those stories have run their course, capital will eventually return to a more realistic question:
Who can actually generate real trading volume and real revenue?
That’s also why I’ve recently started taking another look at HYPE, AAVE, UNI, and JUP.
Among them, the one most worth discussing is definitely HYPE.
Hyperliquid itself is a very typical “trading-driven protocol.”
If market volatility keeps expanding and on-chain derivatives trading volume increases, protocol revenue may rise along with it.
So HYPE’s logic is a bit different from that of a normal public chain token.
AAVE is a completely different kind of play.
It doesn’t rely on memes, nor on short-term hype, but is instead one of the more mature leaders in DeFi lending.
If the market later starts to revalue “revenue-generating protocols,” older projects like AAVE may actually be rediscovered by capital.
UNI is more like infrastructure.
Its biggest strengths are its brand and liquidity.
JUP, meanwhile, is one of the representatives of the Solana ecosystem.
So these four coins actually represent four different DeFi logics:
HYPE = derivatives
AAVE = lending
UNI = DEX
JUP = Solana DeFi
That’s also why I don’t really want to look at just one coin recently.
Because if a DeFi rally really does emerge, it may ultimately not be one project surging alone, but the entire sector being revalued together.
So next, I’ll be focusing on one key metric:
Whether real on-chain trading volume keeps growing.
If only the coin price rises and on-chain data doesn’t keep up, then it may just be speculation.
But if price, TVL, trading volume, and protocol revenue all grow together, then it’s a completely different story.
So my current view on DeFi is:
It’s worth watching, but don’t chase it just because it pumped hard for a day or two.
The most comfortable opportunities are often when the market hasn’t yet formed a consensus expectation.