I've seen some of the "innovation" going on and I am not impressed. The so-called innovation boils down to selling high-risk financial products that are made intentionally opaque so that buyers don't understand what they are buying. This is hardly a new direction for the financial industry, and it's unsustainable because sooner or later the regulators will intervene.
I agree with you to a large extend. Defi will deflate a lot when the bull run is over. Although I've heard of people taking crypto loans to buy houses and being vert happy with the experience so there might be some actual utility in it already.
Overall unless I see real world usage of the networks and people buying stuff with the tokens, using dapps to build portfolios etc I firmly believe that we are in the very early stages of crypto.
We’ve been constantly hearing about the importance of “innovation” in the cryptocurrency space. Meanwhile, Dogecoin hits $50B after having been all but dead for a solid decade. Makes you wonder just how important Defi’s so called “innovation” is to its valuation, and how much of it is just a narrative.
“One week of pumping” isn’t true at all: DOGE originally broke into the top 10 list off the back of the GME hype several weeks ago. This is now the second time it’s happened. In addition, DOGE has undeniably flippened numerous B-rate defi coins throughout its very illuminating run.
Importantly, DOGE clearly shows innovation isn’t necessary for a coin to receive a sky high valuation. Dogecoin at c. 7.5 years old is about as old as any other coin I can remember, and it’s been all but dead for that entire length of time. Now suddenly DOGE is more valuable than the great majority of coins which have been historically propped up by generous amounts of drum beating — e.g. “wow, such innovative”.
What does that tell you about the importance of innovation in cryptocurrency valuation?
Either these coins never needed to innovate in the first place, or all the purported “innovation” drum beating by biased defi investors has always been nothing more than empty rhetoric.
