Mr. Jason Choi, a Forbes 30 Under 30 person who co-founded Spartan Group, the most successful Web3 VC fund in the APAC area, offered his analysis of the continuing “bottom” of the Crypto Winter.
According to Mr. Choi’s statistics, all utility and governance assets related to the decentralised financial sector have suffered the most during this recession.
Unlike Bitcoin (BTC), they peaked in May 2021 rather than November 2021, hence their bear market lasted 400 days rather than 207 days. Even top-tier DEXes had their assets fall 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), were hit much harder: they lost more than 98.5 percent 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 over 99% of their value when compared to the ATH.
Layer 1 protocols (L1s) have traditionally shown lower volatility than DeFi tokens. With losses of 63.5% and 65.4%, respectively, Ethereum (ETH) and Tronics (TRX) are the two most stable assets.
Overhyped coin MINA, which made news with its post-launch rise, is the only Layer 1 protocol that has lost more than 90% of its market value.
Choi also noted that the Cosmos (ATOM) ecosystem, a complex cross-chain architecture, shows “defensive” pricing performance in the midst of market volatility.
The investor doesn’t know where such a situation came from, but it might have something to do with the lack of involvement of VC funds.
