As the DeFi craze sweeps over the world, the CEO and founder of one of the most impressive projects has decided to double down and talk about the industry and the booming space. The Synthetix founder Kain Warwick is a long-time crypto market participant (since 2012) who thinks that with the ongoing price action and fundamental trends, we are still in 2016.
However, we all know that cryptocurrencies have grown a lot – and according to him, they have a lot further to grow in the coming years. From the Bitcoin, Ethereum news and whatnot else, Warwick still thinks that we are in the early days.
The Synthetix founder fully explained that having lived through two previous crypto cycles, his opinion is that the industry’s current situation is analogous to 2016, which was “the calm before the 2017 storm,” so to say:
“I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…”
I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…
— kain.eth (@kaiynne) September 22, 2020
The main reason why the Synthetix founder Warwick thinks so is that after the recent strong decline in Bitcoin, then in top altcoins including his own SNX, there are few who are looking to buy the dip. He expanded on his thoughts on the current situation in the crypto market, in a post published to the Synthetix site.
“So many things are happening simultaneously that it is impossible to track the potential consequences of all of them let alone the combined consequences of stitching them all together.
Thus you get the challenges for the DAI peg, and weird volume spikes across the DEX landscape due to shifting protocol incentives, and high yields on specific DeFi tokens on lending protocols.”
The Synthetix founder Kain Warwick also mentioned how builders in the ecosystem must acknowledge that the decisions they make affect the rest of the DeFi ecosystem, meaning that there needs to be a concentrated effort amongst all teams to work together and create better products.
Other commentators made similar comments about Bitcoin, but the Synthetix founder was the most vocal about how the coin is still in its early innings of the first growth cycle.
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