$DEFI - Still Coming Out of a Downtrend + Strength in Crypto Since June, Bitcoin hit $40,000 for the first time on speculation of Amazon soon accepting the currency as a form of payment. However, they denied the speculations. Even so, Bitcoin has held relative strength above $37,000, around 13% higher than 5 days ago and 9% higher than the beginning of July, which means that there‘s still a bullish sentiment on Bitcoin despite Amazon’s decision not to accept the cryptocurrency. However, Goldman Sachs did file an application with the SEC for an ETF, giving exposure to public companies in the DeFi space. An institution like Goldman Sachs making an ETF would move a lot of cash into publicly-traded DeFi companies (the average $GS ETF has around $1B under management).
Read more about it here: https://www.google.ca/amp/s/www.coindesk.com/goldman-sachs-applies-for-defi-etf%3famp=1
Due to this strength in Bitcoin, companies involved in the cryptocurrency sector have seen a boost in share prices. One of those companies is $DEFI, which seems to have broken a downtrend where it bottomed out at $0.48. $DEFI is an exciting company for a few reasons.
- Extremely diversified: Generates revenue from ETNs, Governance, Treasury, and Ventures
- ETNs: $DEFI makes money from ETNs in 2 ways, management fees on AUM and revenue from staking invested currencies (AUM in their ETNs have grown exponentially since launch)
- Governance: Providing independent governance for decentralized networks to run separate nodes that will verify transactions
- Treasury: Generate interest on cash accounts through the use of stablecoins (because of historically low-interest rates in the centralized sector)
- Venture: Searching, acquiring, and partnering with companies around the DeFi sector to further increase their diversification and underlying business value. A recent news release stated that the venture portfolio saw a 255% ROI over the first 6 months of this year. (https://www.google.ca/amp/s/finance.yahoo.com/amphtml/news/defi-technologies-updates-venture-portfolio-113000732.html)
These 4 main business points show that $DEFI’s business isn't overexposed to cryptocurrency’s price changes/volatility. Instead, they're following a path of providing other people/average investors with the ability to invest in unique projects and services across the entire DeFi sector. They could even become part of the DeFi ETF that Goldman Sachs has applied for! The current market cap is $145M, and IMO there's still a lot of room to grow here.