If you are one of those persons who invested in some DeFi coins early, you must be pretty happy with your investments right now. From the past couple of months, we have seen crazy gains in DeFi coins with some coins rising three times their value.
Right now, people are jumping into every other DeFi coin they find in the market and that's where you have to be careful. Not every DeFi coin is going to rise in value, some of them might plummet further down and people will regret investing in them later.
On top of that, there are many YouTubers or so-called crypto influencers who are shilling their own DeFi coins hoping that their audience will buy them and they do succeed sometimes. We have to be more cautious with the new coins coming in the market as the hype behind DeFi is tremendous right now and some people want to take advantage of that by bringing new coins in the market. They are most likely to exit scam.
2020 seems to be the year of DeFi. This isn't new, we have seen a particular niche in demand in the past as well. For example, in 2017, there was a huge demand for ICO coins. People bought every other ICO coin without even knowing about the project. Some of them did make people rich but most of them just filled their bags and left.
Then came a season of exchange coins and we saw the likes of BNB, Huobi Token, and others rise in value significantly. Of course, that hype just died down recently and now people are crazy about DeFi coins. But you have to understand that the craze for DeFi won't last forever. We might see a next niche come out and rule for another season any time soon.
What will that niche be?
Well, as far as I am concerned, gaming coins have a very good chance to be the next king in the crypto. The gaming industry is a multi-billion dollar market and with the likes of Enjin, Wax, Ultra, and others taking gaming on blockchain to the next level, we might see people jump into gaming space after DeFi.
Another niche on which I am bullish on is decentralized social media. Of course, that includes steem, hive, and many others but these two are the most prominent ones and if this niche manages to create that hype among people, many among us might retire on these investments.
There are other niches like the creation of smart cities and homes which could be the next hype-driven kings for a season where IOTA takes a lead.
But let me know what do you think about DeFi and do you think the hype around DeFi will die down soon?
Also, let me know what niche do you think has the potential to be the next crypto king for a season?
This is not financial advice. These are my personal thoughts and opinions
