Independent investor Jason Choi took “snapshot” of ongoing bear market and identified its worst sufferers so far
Mr. Jason Choi of Forbes 30 Under 30, who co-led Spartan Group, the most successful Web3 venture capital fund in APAC, shared his analysis of the ongoing Crypto Winter “bottom”.
New-gen DeFis decimated by bear market
According to statistics shared by Mr. Choi, all types of utility and governance assets associated with the decentralized finance segment have suffered the most amid this recession.
Unlike Bitcoin (BTC), they peaked in May 2021, not November 2021; as such, their bear market lasts 400 days instead of 207 days. Even top DEXs have seen their assets drop by 90% on average.
At the same time, “new DeFis” or “DeFi 2.0” protocols, including the likes of Redacted Cartel (BTFRLY), Olympus (OHM) and Wonderland (TIME), are affected even more dramatically: they lost over 98.5% on average.
Some protocols in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Saber Protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost more than 99% against the ATH.
ATOM ecosystem is safe haven?
Traditionally, Layer 1 protocols (L1s) demonstrare lower volatility compared to DeFi tokens. Ethereum (ETH) and Tronics (TRX) are the two most stable assets with 63.5% and 65.4% losses.
The overhyped MINA coin, which grabbed headlines with its post-launch rally, is the only Layer 1 protocol that has lost more than 90%.
Also, Mr. Choi noticed that the ecosystem of Cosmos (ATOM), a sophisticated cross-chain architecture, demonstrates “defensive” price performance amid the market carnage.
The investor is not certain of the exact roots of such a phenomenon; this can be attributed to less involvement of venture capital funds.
