- Bitcoin Cash, XRP, Cardano, among others are accused of manipulating their market capitalization.
- Decentralized finance protocols on Ethereum will absorb “ghost blockchains” market capitalization.
The Total Valued Locked (TVL) on Ethereum‘s DeFi sector reached an all-time high this year, with a current figure of $6.46 billion. At its peak, the TLV increased by billions in a few days. This phenomenon has led several experts and members of the crypto community to question the future of the “ghost blockchains”.
A ghost blockchain, as podcaster Eric Conner explained, is one with a low level of adoption. Furthermore, they could be understood as projects with few use cases or with a use case that is overtaken by a competitor. In that line, the developer for Google Payments Tyler Reynolds published a tweet in which he asks how some of these blockchains and cryptocurrencies can have market capitalization exceeding one billion dollars. Among these projects, he mentioned some of the most important cryptocurrencies in the top 10 such as XRP, Bitcoin Cash, Cardano, Stellar Lumens, EOS.
Does Cardano, XRP and Bitcoin Cash manipulate their market cap?
According to Google’s developer, there is no solid foundation for the referred coins to have a market capitalization greater than yearn.finance. The latter has been one of the most successful protocols on Ethereum’s DeFi in recent months and offers its users the possibility of doing yield farming without having to go through the complexities of calculating fees and finding the protocols with the best returns.
At the time of publication, yearn.finance has less than a billion dollars in market capitalization with $994 million. On the other hand, the cryptocurrencies that Reynolds is questioning accumulate about $23 billion in market capitalization. Comparing this figure with the DeFi protocol capitalization, the Google developer concluded that the listed cryptocurrencies get their rating because they have a restricted supply, do market manipulation or intensive marketing for “the vulnerable”. Reynolds believes that investors should not be guided by “just the graph” of prices to value a project. In a different publication, he stated:
Degen DeFi farming has left some amazing projects deeply undervalued. People mistakenly skip out on things that can 100x over the next 5 years for a “safer” 10-20% gain over 2wks. These discounts won’t last forever. Look at $YFI price action.
Jasoon Choi of the Spartan Group said there are no “defensible arguments” for Bitcoin’s forks to continue to exist in the future. Choi along with Reynolds and Conner believe that the DeFi sector and its protocols will absorb the nearly $50 billion found from the ghost blockchains.
The Google developer conducted a recent survey through his Twitter account. There he asked his followers how much the DeFi sector could grow to by the end of this year. With nearly 400 votes, survey participants voted that DeFi will exceed $10 billion by the end of the year. Reynolds added:
In the last bubble, total crypto mcap was nearly $900B, BCash alone was $50B. A great index of DeFi assets should easily 10x in the next bubble from today’s prices. Even a 100x return from here wouldn’t surprise, but we’re guaranteed to have some major pullbacks along the way.
Der Beitrag Google developer questions real market cap of Cardano, XRP and Bitcoin Cash erschien zuerst auf Crypto News Flash.