Mr. Jason Choi, a member of Forbes’ 30 Under 30 list, co-founded Spartan Group. The Spartan Group is APAC region’s most successful Web3 VC fund. Mr. Jason has expressed his thoughts on the current crypto “bottom.”
DeFi 2.0 lost 98.5% on average
According to Choi’s data, all forms of utility and governance holdings related to the decentralized sector have been hardest hit by the crisis.
DeFi peaked in May 2021, not November 2021, as Bitcoin (BTC) did, and their bear market lasted 400 days instead of 207 days. Even the most prestigious DEXes had their assets collapse by 90% on average.
At the same time, “new DeFis” or “DeFi 2.0” protocols, such as Redacted Cartel (BTFRLY), Olympus (OHM) and Wonderland (TIME), are even harder hit. They lost a total of 98.5%.
When compared to the ATH, certain methods in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Saber Protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost over 99%.
Layer 1 (L1) protocols have historically had lower volatility than DeFi coins. With losses of 63.5% and 65.4%, Ethereum (ETH) and Tronics (TRX) are among the most stable assets.
ATOM Depicts Defensive Price Action
The only Layer 1 protocol that has lost more than 90% is the overhyped currency MINA. MINA was in the news with its post-launch rise. Mr. Choi further said that the Cosmos (ATOM) ecosystem, a complex cross-chain architecture, exhibits “defensive” price action despite the market volatility.
Mr. Choi is not sure of the precise origins of such a situation. These situations could be linked to a lack of action by venture capital funds.
