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November 18, 2021
While BTC and ETH Descend, the Gaming Bull Run Continues
As has been the likeliest short-term outcome, Bitcoin and Ethereum are continuing to move lower, proving once again that corrections rarely end when everyone is buying the dip and optimism still prevails. It is much more likely that we will get a reversal once sentiment really shifts to the bearish side.
With BTC and ETH showing so much weakness, it is remarkable that one sector within the crypto market doesn’t feel like participating in the broader “bear market sentiment”: Gaming and metaverse projects. Apart from a few exceptions, we only see gaming-related projects doing well today…
Terra, the L1 for Gaming?
With the rise of gaming and metaverse projects in recent months, several chains have positioned themselves as “gaming blockchains” – BSC, Polygon, Immutable X, and Solana to name the most prominent ones. Now, we see L1 powerhouse Terra enter the ring as well… Probably nothing.
The Battle for the Metaverse Is on
After Facebook’s massive metaverse announcements, we have – fortunately – seen a lot of resistance form to the idea of a centralized, Facebook-controlled metaverse. The fight for a decentralized metaverse will be one of the defining moments of the next few years. Don't forget to take your stand early!
Aave’s Institutional DeFi Platform Is Launching
After many months of building, DeFi blue-chip Aave is finally ready to release its institutional borrowing and lending platform. While not everyone in the DeFi community is fond of Aave’s compromises on centralization and regulatory measures (including KYC), this release certainly marks a significant turning point in DeFi’s evolution from a purely idealistic space for tech-nerds, to a more mainstream-suitable product offering.
While Aave certainly takes on additional regulatory risks with this move by opening up new “attack vectors”, Aave’s is pursuing its goal to attract the huge amounts of institutional capital sitting on the sidelines, waiting to jump into the crypto markets.
Will this step mark the beginning of a new round of fulminant growth for Aave or will regulators try to restrain the DeFi behemoth’s push into the financial markets? Time will tell.
The path for DeFi going forward strongly depends on the actions by politicians and regulators in the months and years ahead. It’s certainly going to be a bumpy ride with setbacks and progress.