@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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