What will perform best over the next few weeks, Defi, BTC or ETH?
I don’t short or withdraw to cash because all evidence points to the fact that buy and hold is the highest ROI strategy in crypto markets. After a dump it’s good to take a step back and look for where the bigger trends are.
Defi is still trending up against BTC. I’m not big on TA but this just gives you a feel for what the collective is thinking after the crash. So far it’s still always been better to hold a Defi basket, since they launched in June 2020, than BTC (minus funding).
ETH vs Defi is less clear. Defi had been outperforming since mid May but now I’m not so sure.
Eth is still trending up against Bitcoin, in spite of the recent pullback. In USD terms, Bitcoin is back to where it was at the start of the year. So far ETH is only back to late April 2021 in USD terms.
Before the crash I was about 90% Defi but now I have rebalanced to 70/30 Defi to ETH. I expect the drawdowns to be worse, but if the bull market continues, Defi will outperform. I’m overweight Sushi and AAVE.
The recent interview with Constantin Lomashuk on UpOnly was the perfect antidote to the dumping yesterday. Buy and hold promising projects as long as you have enough cash to pay the bills.