Mooms (mooms)

Is DeFi overvalued or undervalued? ​ It's interesting to see how the revenue and market cap of the four biggest DeFi projects have evolved over the past three years. ​ Since July 2021, the ratio for all four projects has decreased, which should be a pretty good thing. However, I'd say it's good only for Maker and Aave. ​ These two did increase their revenue while their market cap decreased or remained similar. ​ On the other hand, Uniswap and PancakeSwap have both seen their revenue decrease. ​ It has to be said for Uniswap that the incentives have been decreased almost totally (-89.3% from $274 million to $29 million) while they were able to retain around 50% of the volumes. The sector was super overvalued before, and now it's just heading to a more rational trajectory, which might even be considered as a bottom signal. ​​ The only thought from my side is a rate cut in September might negatively affect Maker and benefit other types of RWAs (more risk = less appetite for safe yield).

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