Is the market a Bubble?
I'm sure everyone can agree that right now the market is pretty insane, while it may not be obvious to people who are outside the industry as coins like BTC and ETH have pretty much stabilized but from the inside is complete insanity all across the board...
I don't really know where to start writing this article as so much is taking place every day and it's so hard to keep track of everything that is happening. I guess the first thing to mention is the overall hype and FOMO around the DeFi space, DeFi has been a major selling point of blockchain over the past year and growth has generally been insane, but right now any project that is in the DeFI space is just going parabolic, and it doesn't seem to be slowing down as we see more and more hype build over the past few days... for me, any new project that gets released and it related to DeFi is an instant market buy.
Not only is DeFi the hottest new thing right now, but pre-sales and ICO type offerings for projects that are launching with new systems such as bonding curves and IDO's seem to be insanely popular. It sort of feels as though people have caught the 2017 bug again and are literally buying any new token that gets listed. That said, I am completely happy with this, as long as you do your own research about what projects are actually working on and building there is literally so much money to be made in this current market.
Another thing which is pretty crazy right now is the freaking farming idiots who are literally just buying anything that has a food type in the name or just .finance at the end... we saw YAM a few weeks ago, currently seeing SUSHI and there have been a bunch of other DeFi based projects that are seeing insane rewards for farming. It's pretty much the wild west when it comes to farming, no regulation, no security audits just pure chaos and profits.
While the market is still just warming up for our macro bull market cycle with Bitcoin, the current climate of things makes me think that we could be in a mini-bubble that is fueled by past emotions and a stagnant market for the past two years. I cannot tell you how much dm's I have personally received this month asking what is the next 10x project that is being listed soon, this type of behaviour has not really been seen since our ICO 2017 phase.
You can clearly see a growing number of projects starting to launch their tokens right now, due to the market being so hot, you could probably successfully launch a token that has no working product or real value, which is defiantly worrying. I would really stress doing your own research on projects, finding out how long the project has been in development and who is running the project. There is a crazy amount of opportunity, but just be careful and remember some of the core values such as risk management and diligence.
Speaking from personal experience I don't really feel as though we are at risk at the moment of this bubble bursting, I would probably say we are maybe halfway through right now? In hard to determine what phase we are in but just speaking from past experience I think we have a few more months to ride out this current hype. We might see different sections burst at different times, farming seems like it will be around for a long time and be a major incentive for cryptocurrencies so I am personally excited about how that plays out. In terms of pre-sales and ICO type offerings, the market still seems fine with how this is playing out and volume/capital on solutions such as uniswap continue to keep growing so I also think this has further room to grow. While there is a 95% we are in a mini-bubble, I personally think we have some further room to grow and overall the market is looking healthy right now.