Uniswap

Bitcoin

SushiSwap

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<p>The segment of <a href="https://u.today/defi-market-cap-hits-new-145-billion-all-time-high" rel="noopener noreferrer nofollow">decentralized finance (DeFi) protocols</a> has matured since the bull run of 2020-2021 ended. Here's what it means for users, VCs, token holders and retail investors.</p> 
<h2 id="blue-chip-defi-or-anything-was-meme-last-cycle">"Blue-chip DeFi (or anything) was meme last cycle"</h2> 
<p>During the latest bullish rally in crypto (Q1, 2020 - Q4, 2021), every "blue-chip" altcoin was nothing but a meme. None of them managed to start generating a sustainable cash flow for their investors and token holders. Every successful protocol was surrounded by dozens of VC-fueled forks,&nbsp;Framework Ventures'&nbsp;Vance Spencer recalls.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Important to internalize. Blue chip DeFi (or anything) was a meme last cycle. Nobody was generating sustainable cash flow and tbh the industry was a shitshow. Launch a successful protocol and 15 VC funded forks would come in with tokens and vampire attack you.This cycle is…</p>— Vance Spencer (@pythianism) <a href="https://twitter.com/pythianism/status/1684981202275667968?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 28, 2023</a> 
</blockquote> 
<p>This imbalance between mediocre value flow and enormous hype around "blue-chip DeFis" made "vampire attacks" possible. As covered by U.Today previously, the first such attack happened in September 2020, when then-new DeFi SushiSwap (SUSHI) siphoned $1.4 billion of Uniswap (UNI) liquidity overnight.</p> 
<p>Amid the 2020 DeFi tokens euphoria, the mysterious <a href="https://u.today/sushiswap-has-new-master-chef-after-alleged-exit-scam" rel="noopener noreferrer nofollow">SushiSwap (SUSHI) creator Chef Nomi</a> announced better conditions for "yield farming," i.e., more generous liquidity provider rewards. As a result, LPs started dropping <a href="https://u.today/ripple-cto-says-uniswap-is-not-decentralized" rel="noopener noreferrer nofollow">Uniswap (UNI)</a> en masse.</p> 
<p>Such tricks by marketers will not work in the upcoming cryptocurrency cycle, Spencer foresees. Today, the cryptocurrency segment is about real cash flows and large markets.</p> 
<h2 id="who-will-join-faang-of-defi-in-2023-2024">Who will join FAANG of DeFi in 2023-2024?</h2> 
<p>As many "queens for a day" are simply not there any longer, VCs will not be interested in funding arrays of "new-gen" blue-chip DeFis. This will result in consolidation: Only the strongest players will be able to attract liquidity and accomplish well-balanced tokenomics.In some regards, this consolidation can lead to the emergence of the "FAANG of DeFi." Top DeFis will achieve the dominance&nbsp;Facebook, Amazon, Apple, Netflix and Google created in the Web2 digital world.</p> 
<p>As covered by U.Today previously, Vance Spencer predicts the approval of Bitcoin ETFs by the end of 2023.</p> 
<p>This announcement will also unlock massive opportunities for other major cryptocurrencies, the expert says.</p>

'FAANG of DeFi Assembling,' Seasoned Crypto VC Says

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