The aftershocks of the current crypto market crash are giving way to Crypto is dead cries as a hot topic for forthcoming months. The collapse of DeFi tools is one of the consequences.
Kyle Samani, managing partner of the MulticoinCap investment fund has charted short-term outcomes from 12th March 2020, and how it might affect the decentralized finance development’s future.
Crypto is dead or Worst is yet to come?
Most analysts are claiming that this on-going market recession is an instrument for checking the reliability of Bitcoin and other cryptocurrencies as the claimed ‘safe haven’ for the investors, the store of value label and remittances. Unfortunately, at present, it seems to be failing thus giving way to the crypto is dead impression.
For instance, Samani observed that during mass liquidation DeFi applications and other crypto-economic institutions have lost integrity and synchronization. Hence, the lag period of the Bitcoin blockchain, Ethereum network, and the centralized system could differ distinctly. Therefore, the price of a certain asset could vary on different platforms simultaneously.
Samani tends not to favor any of the solutions that are currently being projected for the issue of interoperability, such as the optimistic-roll-ups, sharding, lightning Network, etc. He furthermore stated that neither the Bitcoin nor Ethereum has the potential to solve the stated problems, however; a whole new technological basis might:
Latest base layers with the capacity of 1000x seem to be the clearest and probable technical solution, however; it could be the toughest to pull socially.