With the DeFi tokens sputtering out using certain brand-names, there has been a major increase in the number of projects which are catching major bids. This comes after several aggressive farming programs of a higher yield, which would be coupled with major technical advances, and generous airdrops, This would definitely be one of the existing sets of outlier projects which would push both the fundamentals and price that has led to the token being called Gen 2.
Where Does The DeFi Token Stand Currently?
Mewry, one of the catalysts stated in an interview that the eGirl Capital was mostly an organization that started as a very important joke. The tokens have already started garnering major attention due to the well-maintained communities and their cunning models of token distribution.
Both of these have led to increasing loops in both price and sentiment. In the same interview, they also mentioned how the entire process was about seeking more novelty and narrative at a particular stage in their cycle. Most of the fundamental analysis would be geared more when the market starts cooling, and valuations can only have utility as backstops. Several hot narratives have tended to trend around grassroots projects which have already carved a niche out for them in the market.
Although investors are definitely going to be eager to move towards these new tokens which are fast-rising, it will definitely be worth asking more about the projects- and if they are sustainable at all. And more importantly, it needs to be asked if they would have to run even further down the road when it comes to tokens.
The phenomena of Gen 2 have been echoing the major tropes of a DeFi summer the previous year- which was all about filling in with stimulus check airdrops, and token prices which soared. It was also filled with heists, hacks, and major rug pulls.