DeFi was all the rage back in the summer of '20.
I remember it like it was yesterday.
The crypto internet ATM machine was back.
All you had to do was throw one ETH in
and get two back.
But this wasn't the good ol' ETH giveaway scam.
This was just how easy trading was during this time.
But many people believe that DeFi had its 15 minutes of fame,
and it's time to find a new niche
to base our investments on.
Today, I'm going to tell you the sneaky underlying reason why DeFi will be back in 2020
and why it will lead the charge for altcoin season.
Then I'm going to gaze deeply into my crystal ball and give you my Top 5 DeFi coins of 2021.
Miss it
and live with the regret.
Let's get it.
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Welcome to BitBoy Crypto!
My name is Ben.
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and you can check out my thoughts for the week.
Now, in this video,
we're going to be breaking down the underlying cause that makes me believe fully
that DeFi is coming back for another swing,
and, right now, you should be putting out some feelers looking for which coins
to put those Bitcoin profits in.
They're not here today. I get it.
But it is coming.
Then, I'm going to give you my top 5 DeFi coins for 2021.
These are five projects that range from somewhat speculative to slam dunks,
so you're definitely going to want to watch until the end to see all five coins.
One coin is going to absolutely shock you.
So, if you were invested in DeFi over the spring and the summer,
then you made bank.
If you are a true Degen like me, then you are raking in UNI airdrops by the boatload.
The amount of Uniswap tokens I got airdropped to my wallets at its peak was pretty embarrassing.
Those were great times!
And the euphoria of DeFi moonshots was the closest thing I had felt since 2017 for altcoins.
But then just like that,
it was gone.
Poof!
People say it was a bubble that popped,
and it isn't coming back.
Same people called Bitcoin a bubble in 2017.
People have to understand the difference between bubbles and cycles.
We're used to our national economies which are driven by fiat.
Fiat, for those who do not know, is a physical representation of value that has no intrinsic value.
US dollar
Think paper money, coins.
Their only value is what we can spend them for.
And more importantly,
there's nothing backing it.
The United States switched to fiat in 1971 for instance,
when old Tricky Dick took us off the gold standard.
After that, gold was free to increase in value,
and our national currency no longer had anything of value attached to it.
Other than whatever our imaginations can dream up.
Cryptocurrency, on the other hand, has full coins and tokens with both intrinsic value as utilities
and with perceived value based on rarity.
Cryptocurrency is deflationary instead of inflationary like fiat,
and every four years when the Bitcoin halving occurs
and production of Bitcoin is cut in half,
will get a shock to the supply,
a swift change in production.
And this is the built-in "coinanomics" that Bitcoin has that drives up the demand.
The price goes up while the supply shrinks.
Now, there's rarely a supply shock to the supply of fiat.
But, in the last year, we've seen what happens when you have a supply shock
in the other direction, aka the US Federal Reserve printing dollars like it's going out of style.
INFLATION
The value of our dollar is down over 10% in the last 9 months.
Old Carl from The Moon YouTube channel laid it out great on Twitter this week.
He said, "24% of all existing dollars were printed in the last 12 months."
It's astonishing when you think about it.
The point is this:
We've seen a nonstop bull market in the stock market over the last several years.
It seems like it's lasted forever.
But, see, there's really nothing out there that will make the stock market go on timed cycles.
Cycles driven by points in time when a change occurs is really the thing that separates the crypto markets from the stock market.
We know when they're going to happen.
And I firmly believe that DeFi did not pop.
It just went through a cycle
where people started pulling profits out.
And who could blame them?
We weren't really even to the bull run yet and altcoins were exploding.
Bitcoin was still sideways around $10K to $12K.
And let me get this right.
You think when Bitcoin starts heading up to $30K, $50K, $100K or more
that people aren't going to remember what their bread and butter for altcoins was?
DeFi is on pause right now.
And that is the time to accumulate those high-potential projects for the DeFi explosion round 2.
So here are the five coins I believe are your best bet to make massive gains in DeFi in 2021.
Coming in at No. 5, I have Aave.
Formerly ETHLend.
Aave has found its way to the upper echelon of DeFi projects with staying power.
Now, I could have easily chosen Compound or Maker, even Yearn Finance here, and I consider all of them,
but, in the end, I think that Compound already had its miracle run
when it sat atop DeFi for weeks, unseating Maker as the top DeFi project
back before every project was considered DeFi,
or at least before every project changed their direction
so they could be with the cool kids in DeFi.
And Maker, well, let's just say it's seen better times.
And I don't think it has dropped because it got exhausted at the top.
I think that it legitimately has some issues.
We saw this during the crash in March.
And Yearn Finance, well,
there's no way it can continue crushing it this much, am I right?
I think Aave is the most complete token out of all the heavy hitters
that were birthed in DeFi and have stayed in DeFi.
Aave is known as the liquidity protocol and has almost $2 billion locked up on it right now.
Aave allows users to provide liquidity for other coins and offer them the best returns on it.
This liquidity is for what they call Flash Loans.
These are uncollateralized loans for people to be able to borrow instantly,
instead of having to go through the process of collateralizing
because ain't nobody got time for that!
It takes a few clicks.
The latest news though is that Aave just got a huge upgrade that will save users gas fees,
and, even more importantly, the version 2 upgrade will make even risky investors trade safer,
making transactions smoother in trying to stabilize borrowing rates.
It just feels like now that it has gone through its token swap and launched version 2
that it is ready to bust out.
And it's already near at the top of DeFi.
Look for Aave to explode in 2021.
At No. 4, I have an oldie but a goodie.
ZRX
This protocol allows users and exchanges to trade and swap ERC-20 tokens.
I mean, it's basically old news.
Now, you can do that almost anywhere!
But you may not know that the ZRX protocol powers BitSwap
and some of the other exchanges that you frequent, you Degens.
The idea behind 0x was good and the team executed it.
They're way ahead of the times in 2017 and 2018
when nobody even knew why anyone would want to trade Ethereum tokens.
I was super bullish on it in 2018 because I could see the future,
obviously,
but they were a little too far ahead of their time.
ZRX floundered for a long time but now looks to be right back in the fight, scratching and clawing
for DeFi dominance in 2021.
And you may not have known this,
but ZRX set an all-time record in volume this quarter.
Just as we talked about earlier,
crypto happens in cycles,
and the excitement is building again around ZRX.
I think it's gonna break out.
At No. 3, I have Synthetix.
According to Token Metrics,
this is the No. 1 overall coin for the next year for value investors.
And it's not even close.
This is the only coin I've ever seen on Token Metrics with a score this high.
And we are trusting the AI and the machine learning on this one.
Synthetix, I've said for a long time, is a very underrated coin in the DeFi game.
Every time I thought it was going to explode,
something seemed to happen in the larger context of DeFi that made it stall out.
I feet like it was right on the verge of an explosion before DeFi went down.
If you want to dig deep into why Token Metrics is giving it this high of a score though,
you need to visit tm.bitboy.live to sign up for Token Metrics today.
You can get a cheap trial and see how you guys like it.
I know a lot of you guys signed up for it over the last couple of weeks,
and you are getting to see why I turned to Token Metrics so often.
Coming in at No. 2,
and this is going to surprise a lot of people,
Cardano
Whaaaa? Cardano? DeFi?
Well, technically it isn't DeFi.
But here's the thing.
They will be.
While Cardano is set to explode in this bull run,
a lot of doors and possibilities are going to open up for the ADA ecosystem.
This is one of my top overall coins for this bull run.
But I'm particularly interested to see how Cardano's foray in DeFi will go
because after Goguen is fully up and running,
it will be an easy transition for Cardano to get big into the decentralized finance game.
And why wouldn't they?
We've covered several stories over the last 6 months
about potential ties between Cardano and DeFi players.
It seems to me like Cardano was keeping its cards close to the vest on this one on purpose.
I've heard whispers and little birdies saying,
"Do not sleep on Cardano."
When ADA comes to play, it comes ready.
And I believe the team has been working connections, partnerships and alliances
specifically to make a big splash in DeFi
when no one is watching.
Coming in at No. 1,
I have Chainlink.
Come on. It's an easy pick.
Now, we have a big video later this week on oracles and why my $900 prediction for Chainlink
may just not be enough.
I gave you guys a scenario several months ago
where it was fathomable,
but barely,
that LINK could reach $2,000 per LINK token.
But I said in the video that I wasn't quite sure it could go that bullish
because there would need to be extenuating circumstances.
I think we all see the chaos around the world,
and it's reasonable now to expect the most bullish scenario across the board.
That's what I'm counting on.
If you want to hear why oracles are such a big deal though,
then look out for that video later this week.
But there you have it, my Top 5 DeFi coins of 2021.
Which ones did I get right and which ones did I get wrong?
Make sure to drop those comments down below.
That's all I got.
Be blessed.
BitBoy out.