Can this round of DeFi projects like UNI and CRV break their previous highs? | Q&A

1. What is Degen on the Base Chain?

I previously wrote an article specifically introducing Degen on the Base chain. It was originally just a MEME coin on the Base chain, but later, more and more applications on Farcaster began to use it as a utility token, and there are teams that have developed a third-layer network based on the Base chain specifically for the native token Degen.

Degen may not be the MEME coin with the largest increase on the Base chain, nor is it necessarily the most popular MEME coin on the Base chain right now, but it is likely the most widely used MEME coin on the Base chain at present.

2. How about SSV?

I have discussed this coin in previous articles; it can be considered part of the staking category of projects.

The business model of staking projects is very clear, and the risk and return are relatively easy to analyze. It is also quite easy to see where the ceiling of the project lies.

Estimating whether the valuation of such project tokens is reasonable or whether it exceeds the project's reasonable range is straightforward. Once the price of such projects becomes excessively outrageous, they can easily be cashed out or dumped, so the price increase of the coin can easily hit the ceiling.

For such projects, their tokens, apart from temporary speculation that may lead to a price surge, are likely to trend steadily after the hype subsides, perhaps performing slightly better than Bitcoin and Ethereum, or perhaps not.

Therefore, these types of tokens are more suitable for large institutions and big capital participation, and they hold little significance for retail investors.

For the staking projects I participate in, such as EigenLayer and Ether.Fi, I share this view; if it weren't for the opportunities to take advantage of these projects, I probably wouldn't pay much attention to them.

3. The performance of DeFi this round has been too poor; do UNI, SUSHI, CRV, and others have a chance to break their previous highs?

In this round of trends, the tokens of classic DeFi projects have indeed been disappointing, although some newer projects like Pendle have performed quite well.

Overall, I still believe that the prices of DeFi project tokens are suppressed.

DeFi projects are currently the only segment among all subdivisions that can achieve positive revenue. However, due to regulatory obstacles, it is difficult for the revenue of these projects to be transparently empowered to their tokens, which severely limits the prices of their tokens.

Unless this issue is resolved, the upward potential of tokens in the entire DeFi ecosystem is likely to be limited.

As for whether they can break their previous highs in the upcoming bull market, I cannot predict that.

4. There are too many materials in areas such as judiciary, finance, contracts, and archives that need to be preserved for over 20 years; how much development space is there for decentralized storage in these fields?

I believe there is significant space for decentralized storage (especially permanent storage). However, whether the materials mentioned in this question, such as judiciary, finance, and contracts, can utilize current permanent storage (like Arweave) is technically feasible, but at this stage, the barriers to use are primarily in cost and operational thresholds.

I believe that when the costs and usage thresholds for similar applications drop low enough in the future, this application will definitely explode.

5. Will PEPE become the second Dogecoin or Shitcoin?

I think the possibility of PEPE becoming the second Shitcoin is low because it lacks a strong team to build an ecosystem. Whether it can become Dogecoin depends on whether there are people like Elon Musk continuously paying attention to it.

Without these conditions, PEPE is likely to be just a project that rides on trends: people will jump in when they think of it and forget about it when they don’t.