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Home Latest News Bitcoin Top fund manager claims shorts Ethereum DeFi make no sense here

Top fund manager claims shorts Ethereum DeFi make no sense here

The past two months has been brutal for the DeFi market. While the dynamics of this space are perhaps better than ever, the overall valuation of DeFi contracts and other metrics grows higher, space coins along with Ethereum have been plunged from their summer highs. A crypt-asset-analyst study in early October found that the DeFi Coin average dropped 65% from its summer highs. After that study, the state of the decentralized finance market has worsened as many Ethereum-based coins have continued their descent.

Su Zhu was one of the first investors in the space to expect a downturn in this sector, or at least in altcoins relative to Bitcoin. The prominent investor now believes that DeFi shorts cannot be profitably invested. 

Su Zhu wrote on 30 October 2020, that he doesn’t think “DeFi shorts have good r/r at this point” against the U.S. dollar, adding that he thinks “top-tier” projects are reaching points where long-term investors will deploy fiat to accumulate investments for the long run. Yet, he caveated this with the statement that “over the next few months,” he expects 95% of all altcoins to be down against Bitcoin.

According to Cryptoslate.com, Qiao Wang, a crypto-asset analyst and former head of product at Messari highlighted the price action in four cryptocurrencies: Yearn.finance (YFI), Aave (AAVE), Uniswap (UNI), and Synthetix Network Token (SNX).  In the last few days, all four of the cryptocurrencies at the core of the whole DeFi space have experienced a devastating decline. The decrease in these coins means that investors must refer to the rest of the DeFi space.

Ethereum, currently ranked #2 by market cap, is up 1.34% over the past 24 hours. ETH has a market cap of $44.09B with a 24-hour volume of $11.38B.

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