After the 2017 bull market, cryptos took a nasty nosedive:
The overall crypto market dropped by 50%...
And the value of many tokens dropped by 90% or more.
But earlier this year, something started changing…
And as I’ll explain today, now we could be on the cusp of another crypto bull run.
The Big Boys
To kick thing off, let’s look at the performance of the two largest and most widely held crypto tokens: Bitcoin (BTC) and Ethereum (ETH).
After hitting a peak of $18,775 in late 2017, Bitcoin dropped to $3,200 with 12 months.
But BTC is faring far better this year. While the stock market is basically flat since January, BTC has rallied by 51%.
It’s a similar story with Ethereum. Year-to-date, it’s posted an impressive 178% profit.
But here’s the thing…
If you’d focused on a different corner of the crypto market, you could have earned even more…
Even Bigger Profits on the Horizon
You see, a tiny corner of the crypto market is on fire right now…
And investors have been racking up staggering gains there. For instance:
- During the first seven months of 2020, a crypto called ChainLink (LINK) shot up by 979%.
- With Yearn Finance (YFI), investors could have earned 2,422% year-to-date.
- And Aave (LEND) has soared by 3,403% this year!
So, what do these cryptos have in common?
And why is it causing their prices to rise like it’s 2017 again?
The Next Crypto Revolution
Well, simply put, they’re all part of a major new trend in the crypto market…
Something called “DeFi,” which is short for “Decentralized Finance.”
You see, in the early days of crypto, many believed that tokens like Bitcoin could be a replacement for traditional currencies like the U.S. dollar.
And if that happened, a suite of financial services could be built on top of Bitcoin — from crypto banking, to crypto borrowing and lending.
But given BTC’s wild price fluctuations, that never happened.
I mean, how could you borrow money in Bitcoin and risk having it lose 80% of its value the very next month? It would be impossible!
But over the past couple of years, a number of cryptos known as “stable coins” have emerged.
As their name implies, their goal is to maintain a stable value. One of the most popular stable coin projects is known as Dai (DAI). Its price is pegged to the value of the U.S. dollar.
And thanks to the rise of stable coins like DAI, a number of crypto-based financial services — “decentralized” services — have sprung up around them.
Earn Crypto Income?
For example, one of the most popular decentralized financial services to emerge recently revolves around crypto lending.
Basically, if you have a large position in Bitcoin and you aren’t planning to sell it for a while…
You could use a crypto lender — a lender like Aave, which I mentioned a moment ago — and loan out your crypto to other investors…
And in the process, you could earn significant yields.
For instance, Aave offers yields running anywhere from a few percent…
All the way up to 24%!
Which explains why the market for crypto lending has exploded over the past year.
In fact, take a look at this chart:
As you can see, over the past 12 months, assets in the decentralized lending market have exploded to close to $10 billion.
Is This the Next Crypto Boom?
Given its growth, and given the potential here to earn market-beating returns, this is a sector we’ve been watching closely.
We’re looking for investment opportunities for ourselves — and for our readers like you.
But before we begin publishing our research and investment ideas on this market, we’d like to ask you a few questions. For example:
- Is this something you’re interested in?
- Do you want to learn more about crypto investing — and more specifically, about decentralized finance?
- Why or why not?
Please reply to this email — or click here — and let me know your thoughts!
Happy Investing.
Best Regards,
Founder
Crowdability.com
