The summer of DeFAI is coming, are you ready?

Over the past week, DeFAI has demonstrated remarkable relative strength compared to all other narratives. With the macroeconomic environment improving and the Federal Reserve's interest rate cuts on the horizon, the DeFAI bull run is becoming a reality.

Written by: Diego, Twitter Blogger

Compiled by: Tim, PANews

This article only represents the author's views and does not constitute investment advice.

In the past week, we have witnessed a significant rebound in the DeFAI sector, with most leading tokens such as ANON, GRIFFAIN, RSS3, and PAAL achieving price increases of 30% to 70%.

The bullish trend in the crypto market has finally reappeared, with Bitcoin price returning to $88,000 and Ethereum also breaking through $2,000.

With the macroeconomic situation improving and The Federal Reserve (FED) poised to cut interest rates, the perfect storm of the DeFAI bull run is becoming a reality.

In today's article, we will first analyze the recent DeFAI market dynamics.

Then, I will elaborate on why I believe DeFAI will become one of the most successful crypto narratives of 2025.

Finally, I will showcase my personal DeFAI portfolio to give everyone insight into my betting strategy on the current market.

DeFAI Market Dynamics

Data doesn't lie. In the past week, we have observed that, compared to all other narratives, DeFAI has shown remarkable relative strength.

In terms of price performance, DeFAI is the best-performing narrative, having averaged a 37% increase in just the past 7 days.

DeFAI was the strongest market hotspot in January; however, the entire market collapsed in February and March, causing DeFAI's bull run to come to a halt.

Today, after experiencing two months of a bear market, we have finally seen the right entry opportunity.

If Bitcoin and Ethereum suddenly skyrocket, pulling out several large bullish candles, can you imagine how the market value of the DeFAI sector (currently less than 1 billion USD) would change?

DeFAI is innovation, but also a "cult"

But why will DeFAI become the best-performing track among all narratives in the cryptocurrency space (games, NFTs, Memecoins, Layer 1, abstraction layers)?

In my opinion, DeFAI will become the most powerful crypto narrative for the following reasons:

• DeFAI is the subsequent evolution of DeFi, which was the dominant narrative during the bull run cycle of 2020/2021. DeFi (and its extension, DeFAI) is precisely the core reason for the everyday application of blockchain technology, and it is the area with the most concentration of users, capital, and attention.
• The first batch of DeFAI products has been launched, which means we are not betting on abstract future concept projects, but rather investing in companies that are currently operating and continuously innovating the DeFi experience. These companies have already earned millions of dollars in fee revenue.
• DeFAI is also a community-driven narrative. From my personal experience, this is absolutely true. Whenever I post updates on the X platform, hundreds of DeFAI enthusiasts interact with me, and the posts always receive hundreds of thousands of impressions, indicating that many people are paying attention to DeFAI and its future development.
• DeFAI is also one of the areas currently most focused on by developers. In recent months, I have maintained close communication with several core founders in the DeFAI ecosystem, including Daniele from HeyAnon, R from Fungi Agent, Bebis from Cod3x, James Ross from Mode Network, and so on. These builders are fully committed to creating the next wave of DeFAI, and I firmly believe they will achieve this vision.

DeFAI Personal Investment Portfolio

I don't really like to disclose my positions, but I believe now is the right time: while the public hasn't FOMOed into buying DeFAI tokens, and before the market frenzy completely consumes rationality.

I will not disclose the specific amount of funds in my wallet, but I will publicly share the proportion of each token in my portfolio.

This is my personal DeFAI wallet:

My largest holdings at the moment are ANON, which accounts for 35% of my portfolio, MODE at 15%, AIXBT at 13%, and both BNKR and VIRTUAL at 8% each. CDX, GRIFFAIN, and PAAL each account for 5%. Finally, MAIGA, GATSBY, and BUZZ have smaller holdings, each at 2%.

Are you ready to welcome the DeFAI bull run?

DeFAI has been continuously developing, and you can still participate in this process, especially before the overall track scale exceeds 1 billion dollars.

DeFAI bull run will be brilliant and glorious, and we will win together in this wave of cryptocurrency.