1/9 Do you remember the #realyield narrative?
It gained significant attention last year. But now it's rarely mentioned.
But did the narrative have a lasting impact?
In other words, did the #realyield tokens outperform other #DeFi tokens since then?
Let's find out: 🧵
It gained significant attention last year. But now it's rarely mentioned.
But did the narrative have a lasting impact?
In other words, did the #realyield tokens outperform other #DeFi tokens since then?
Let's find out: 🧵
2/9 I researched if high protocol fee projects led to better token performance before the #realyield narrative gained popularity a year ago.
At that time, the answer was no.
Yet, just 2 months later, the #Realyield narrative picked up, and the tokens started outperforming.
At that time, the answer was no.
Yet, just 2 months later, the #Realyield narrative picked up, and the tokens started outperforming.
3/9 Currently, there is limited mention of the #realyield narrative on Twitter.
The blue line represents #realyield mentions on Twitter, while the green line is the ETH/USD price.
The blue line represents #realyield mentions on Twitter, while the green line is the ETH/USD price.
4/9 Below are the top protocols by fees & revenue.
But what we really care is the token holder revenue, making these protocols the real #realyield tokens.
The top projects are $CAKE, $GMX, $SNX, $CVX, $GNS, $LVL, $CRV, etc.
But what we really care is the token holder revenue, making these protocols the real #realyield tokens.
The top projects are $CAKE, $GMX, $SNX, $CVX, $GNS, $LVL, $CRV, etc.
5/9 The big question is: Have these protocols outperformed since the narrative began?
As a proxy, I examine the lowest prices in 2022.
These prices were the catalyst for the emergence of the realyield narrative, as the community sought value tokens to buy at discounted prices.
As a proxy, I examine the lowest prices in 2022.
These prices were the catalyst for the emergence of the realyield narrative, as the community sought value tokens to buy at discounted prices.
6/9 The answer is... not really 😅
Yes, #realyield tokens like $RDNT, $GRAIL, $GMX, and $GNS performed extremely well, which would make us believe that the #realyield is, well, real.
But other #realyield tokens like $SNX, $CRV, and $CVX have underperformed non-realyield tokens.
Yes, #realyield tokens like $RDNT, $GRAIL, $GMX, and $GNS performed extremely well, which would make us believe that the #realyield is, well, real.
But other #realyield tokens like $SNX, $CRV, and $CVX have underperformed non-realyield tokens.
7/9 $CAKE is an interesting case.
It generated the most fees for token stakers in the past 24h, but it has been continuously dropping in price.
So, just being a real yield token doesn't mean the token will perform well.
It generated the most fees for token stakers in the past 24h, but it has been continuously dropping in price.
So, just being a real yield token doesn't mean the token will perform well.
8/9 Many more elements are needed to evaluate the token's potential.
Just to mention a few:
• Token inflation
• Other narratives
• Project development
• Competition
In short, for a long-term investment, don't fall for a simple narrative, but take a holistic market view.
Just to mention a few:
• Token inflation
• Other narratives
• Project development
• Competition
In short, for a long-term investment, don't fall for a simple narrative, but take a holistic market view.
9/9 I hope you've found this thread helpful.
Follow me @DefiIgnas for more.
Like/Retweet the first tweet below if you can:
Follow me @DefiIgnas for more.
Like/Retweet the first tweet below if you can:
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