Well, it has been a rollercoaster ride for the last 8 quarters with momentum shifting towards the north and then back into the downside of it. This invaried graph of upward and downward is directly proportional to the ongoing mayhem that has been occurring continuously across the globe.
It all started way back in 2022 when major forces tried to apprehend each other for their glory and pride but the parties suffered a lot along with their mankind being tarnished at either side but this did not stop and it continues till date.
On the other side, we saw some major exchanges and one of the top 10 chain’s under the radar for goof-up that was created internally and by the majority of its parties. Indeed this was one of the major setback across the ecosystem that made the VC’s and the institutions to think a lot from an investment standpoint.
Till date, the only question that arises is do we really have BULL and BEAR conditions similar to traditional markets in Crypto?
The answer is a big YES!!!!
Now, agreeing to the above statement, how do we really understand the sentiments? Is it very much collaborative to the index factor of GREED vs FEAR or does the VOLATILITY and LIQUIDITY matter?
Considering the biggest players in the ecosystem, it’s quite evident that the markets GREED and FEAR are directly dependent on them with small players adding values to the earlier ones.
To support the above, we have few statistics that lead towards the index factor.
( SOURCE: https://defillama.com )
With graph1 representing the highest point of TVL locked and then gradually declining towards 2022 March and then the 3rd graph representing the present TVL. On the numbers side, the peak being at 177B USD Vs the Nov ’23 which is at 45B USD and a loss of almost 300% from the peak actuals.
So what has changed over the course of the last few quarters is the ongoing geographical issues vs DEX exploits vs major chains failing to uphold their stats and something similar to internal trading and arbitrage which has created a fear factor of sustainability and continuous improvement which has impacted negative composition for VC’s, Angels and Institutions to promote or for new investment. Once the new opportunity has been seized for investment, the ecosystem has the potential to garner to the earlier standards of ATH and might be even promoted higher than the considerable value.
The question of whether GREED, FEAR, VOLATILITY, LIQUIDITY matters to market sentiments? And it’s again a YES due to all the scenarios that have been hovered.
About Pontoon: Pontoon is an advanced cross-router meta-aggregator Dapp that provides users with a seamless gateway of exchanging or bridging of assets via its unified intelligence routing. We are currently on 27+ chains that support both EVM and Non-EVM ecosystems.