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Since I started paying attention to the DeFi ecosystem in June, I have always believed that this wave of DeFi is coming with great momentum and is likely to subvert our imagination. There were two pieces of news yesterday that deserve our attention: The first piece of news is: Hayden Adams, the founder of Uniswap, tweeted: Uniswap's 24-hour trading volume is higher than Coinbase for the first time in history. Uniswap's 24-hour trading volume exceeded US$426 million, and Coinbase Pro's 24-hour trading volume exceeded US$348 million. This is a comparison of trading volumes. Let’s take a look at the comparison of the operating costs of the two exchanges: Coinbase: 1,200+ employees, approximately $550 million in financing; Uniswap: 7 employees, approximately $13 million in financing. Coinbase has 170 times more employees than Uniswap, and Coinbase’s financing is 42 times that of Uniswap. In terms of both cost and efficiency, Uniswap has already killed Coinbase. If someone said that the trading volume of decentralized exchanges would exceed that of centralized exchanges even half a year ago, let alone one year ago, I am afraid people would think it was a pipe dream. But now it has happened so suddenly. Uniswap's surpassing of Coinbase not only proves the success of decentralized exchanges, but also proves another major breakthrough in the application field of blockchain technology. Now, this is just the surpassing of Uniswap, an exchange. I believe that as this wave of development continues, more decentralized exchanges will create miracles. At the same time, I also think that we will soon see: the 24-hour trading volume of decentralized exchanges surpasses Huobi, OK and Binance. This is a "paradigm shift" in the exchange field and will also be a historic event in the history of blockchain development. Why did such a catch-up happen? Because decentralized exchanges have two incomparable advantages over centralized exchanges: first, all transaction data is open and transparent, without any black-box operations; second, there is no threshold for listing coins or trading. This irreversible development stems from people's pursuit of openness and freedom. I’m afraid that all centralized exchanges are anxious at this moment, because they didn’t expect that this revolution would happen to them so soon. As for the operations of our investors, I still emphasize my point of view: it is only a matter of time before DEX surpasses CEX, and this round of DeFi boom may be the last good time for exchange platform coins. Investors can cash out their platform coins in batches or exchange them for more promising chips when the time is right. If you are not sure what chips to exchange, the easiest way is to exchange them for Bitcoin and Ethereum. The second piece of news is that as of August 30, 2020, YFI became the first coin to increase 10,000 times in 2020, taking 43 days to reach a maximum of $39,000. YFI has become a well-deserved "demon coin" in this round of DeFi boom. As soon as YFI went online for trading on July 22, its price exceeded US$700, and its price exceeded that of Bitcoin in just one month. In 2017, when the price of Bitcoin surpassed the king of precious metals, gold, for the first time, the whole world exclaimed that Bitcoin had created a miracle. It took Bitcoin 8 years to surpass gold, but it only took YFI 1 month to surpass Bitcoin. This subversion is unprecedented. As of the time of writing, the total market value of YFI has reached 960 million US dollars, ranking 25th. As investors, we must be curious about how YFI will perform next? Judging from the current development, among the various projects that have emerged in this round of DeFi boom, except LINK, no one has yet made it into the top 20. And LINK is not a direct application of DeFi, so it can be said that so far no DeFi project has made it into the top 20. I firmly believe that in this round of DeFi boom, several tokens will emerge and enter the top 20 or even top 10. Aave and YFI are currently the closest to the top 20, so it is very likely that the prices of these two coins will continue to rise and their market capitalization will continue to move forward. However, the prices of these two coins are not low at present, and considerable risks have been accumulated. Therefore, I do not recommend ordinary investors to buy at high prices at this time. The biggest significance of Uniswap surpassing Coinbase and YFI to become the first coin with a 10,000-fold return is that from now on, we must pay close attention to the latest developments in the DeFi field, because I believe there will be new projects that will create miracles again. If you still stand by and think that DeFi is just a game of gambling, you will inevitably miss this new round of revolution. Risk warning: Investing involves risks. The content is only personal analysis and is for reference only. It does not constitute investment advice. Maybe what I said is wrong, so you have to be careful.
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