DeFi is a niche that performs exceptionally well during bull markets. Greed drives the frenzy as high APR rewards generally appreciate, as opposed to remaining stagnant or depreciating. However, it's a sector that ultimately needs to be exited during bearish times... kind of like an ice-cream shop at the beach shuts down during winter. It just becomes a money pit. NFTs tend to fall into the same categorization.
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Hahah nice depiction: An ice cream shop during winter. I think you're right, it's a niche that's basically driven by the hype of the APR it's why almost every defi scheme suffers during the bear market. Plus, I also talked about the hacks. They're prone to a lot of hacks and people tend to lose a lot of money because of this.
Yeah, the exploits and hacks are pretty bad. Fortunately, many protocol victims found ways to compensate users, at least to some extent during 2021 and 2022.
That's true. However, I believe that the greed will continue in the next bull market and the cycle will probably continue.
For sure... no doubts!