Will DEFI Survive the Crypto Winter?

jaycesondon
4 min readFeb 4, 2023

It has been a while since I wrote an article. That sometimes happen when you are in two worlds. In my daily life I’m an accountant, and that has been taking up most of my time of late. I’m still very much in the crypto world though, monitoring my projects and making sure I survive the crypto winter. And what a winter it has been. The market is as cold as the temperatures we are seeing over the country this weekend.

Bitcoin is down over 60% from its all-time high, despite a recent price rebound. Other large crypto projects such as Ethereum and ADA have had large price declines as well. The DEFI world has been hit particularly hard. Large, established DEFI projects like Pancake swap have seen declines of 90% and higher. OUCH!

Two Year Bitcoin Price Chart (Coingecko)

The corner of the DEFI market that’s suffering the most though is the so-called ROI DAPPS. These projects pay investors a daily return in exchange for locking up investors’ funds. Players in this space include DRIP, Piston, Splassive and others. DRIP is coming up on its two-year anniversary and is a pioneer in this corner of the market. DRIP minted quite a few millionaires and near millionaires in its first year of existence.

DRIP’s fortunes have dipped tremendously, and its current price of $0.38 is down almost one hundred percent from its all-time high. Quite a reversal in fortunes.

DRIP Price Chart (Coingecko)

The DEFI market is suffering from a crisis of confidence after a series of rug pulls and hacks. Many people lost money from unscrupulous actors in the field. New investors have gotten cold feet and are reluctant to enter the market. This coupled with the fact that newer and less established projects always fall more than the established projects during a crypto downturn, combined to push projects like DRIP down. The question on everyone’s mind is whether these projects will recover. Many people are hodling wallets with large amounts of these tokens, waiting for a rebound.

What Will It Take for DEFI Projects to Rebound?

I believe these DEFI projects can rebound. The question is: will you be around when they do. Time has shown that the key to success in the crypto space is to hold on to your coins during the downturn, and make sure you are around when the market turns.

Many people get discouraged during these times, sell their coins only to see them rise when the market rebounds. Steel is forged in fire, and that’s the kind of mental strength needed to hold your nerves and your coins, and wait for the market to turn. No one knows how long this will take, so patience is important. And while the past isn’t necessarily an indicator of what might happen in the future, often times it is what we have to look to for what the future might hold.

What will it take for these projects to rebound? No one can say for sure, but I believe the projects that survive the crypto winter will see prices rise once bitcoin and its ilk start to rebound. When bitcoin price starts to rise, retail investors will try to jump back into the market but will realize they cannot make much off $23,000 bitcoin and altcoins with large market caps. The increase these larger coins may see in a bull run is unlikely to be enough for retail investors to see meaningful increases in their investments.

Retail investors will likely look for alternatives to these high-market cap projects. The DEFI projects that survive would have proven themselves to be here for the long haul, and are likely to attract some of these new investors. Projects that seem likely to still be around when the bull run starts include DRIP, Splassive, Piston, FURIO and Elephant Money. These have all been around for close to a year or more, and while they are all down significantly from their highs, the developers are still building on these projects. They could all benefit once the market rebounds.

No one knows which projects will survive and thrive once the bull market returns. What is certain though is if you are not holding tokens in the projects that survive you will not make any money from them. The key is to diversify in case one or two of the tokens you hold fail you are still holding ones that do survive. Stay warm in this crypto winter.

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If you enjoyed the article and wants to join any of these projects, consider using my referral links. I offer airdrops and tips to those who sign up using my referral links. Please reach out to me if you have signed up under any of my links so you can get your airdrops.

DRIP

My buddy address is:
0xCA5051060d8F3e5dE574Eabe533f9A9C2B7F324E

Elephant Money

My Partner address is:
0xCA5051060d8F3e5dE574Eabe533f9A9C2B7F324E

Splassive

My Wave Starter Address is: 0xCA5051060d8F3e5dE574Eabe533f9A9C2B7F324E

FURIO

My referral link is:

https://app.furio.io?ref=0xCA5051060d8F3e5dE574Eabe533f9A9C2B7F324E

Piston

My referral link is:

https://piston-token.com/ref/0xCA5051060d8F3e5dE574Eabe533f9A9C2B7F324E

This article is for information and educational purposes only, and nothing stated herein is to be construed as investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits, or losses you may incur as a result of this information. Please do your own research and due diligence before making any investment decisions. The author has made every effort to ensure accuracy of the information in this article, but makes no representations or warranties, expressed or implied, to its accuracy, completeness, timeliness, or correctness. The author may own cryptocurrencies discussed in this article.

Defi

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Furio

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jaycesondon

Accountant (CPA), equity research analyst and crypto enthusiast.