DeFi and SocialFi Stay Resilient Against the Trend—Is This the Starting Point for a New Narrative?

During this market drop on May 18, there is a detail worth everyone’s attention: 150,000 people were liquidated across the network, BTC and ETH fell sharply, yet the DeFi and SocialFi sectors stayed strong against the trend. This is not just as simple as “withstanding declines”; it is very likely that funds are reshuffling and that the narrative for the next market cycle is the main line.

Why DeFi? After more than two years of reshuffling, the bubble in the DeFi space has been thoroughly squeezed. The leading protocols still alive—such as AAVE, UNI, COMP, etc.—all have real revenue models and relatively clear regulatory expectations. When the market turns fearful, funds instinctively flow into assets with “fundamental” support. DeFi’s counter-trend performance suggests that some smart money believes its value has been undervalued.

Meanwhile, the rise of SocialFi is even more imaginative. After Friendtech, the iterative projects, as well as AI-integrated social trading platforms, are attempting to solve the biggest headache in the crypto industry—user retention and real usage scenarios. When the overall market is falling, SocialFi tokens are able to hold firm, indicating that a group of believers or long-term players are staying steadfast. Assets like these have a “community premium” attribute and are relatively less sensitive to fluctuations in the overall market.

Putting this together with the first discussion question: Will geopolitical risk hit the market again? My judgment is: yes, but with diminishing marginal impact. If the US and Iran really engage in military action against Iran, crude oil and gold may rise in the short term, and Bitcoin may follow the US stock market—dropping first and then rising. As for DeFi and SocialFi, because their linkage to macro liquidity is not as direct as BTC’s, they may instead become a hedge choice for some funds.

In terms of trading approach, I would take a “dual-head allocation”: place 40% of the total position on BTC and ETH as a stabilizer; the other 40% is diversified across 3-4 leading DeFi projects and new SocialFi up-and-comers, especially those whose decline in this downturn is less than 5% and whose trading volume has not shrunk. Keep the remaining 20% as cash, waiting for the “golden pit” after geopolitical risk truly erupts.

One last reminder: staying resilient against the trend doesn’t mean you will never experience a further drop. If the overall market continues to worsen, no sector can stay completely unaffected. But its significance lies in—showing us who is swimming naked as the tide retreats, and who is wearing swim trunks. This observation is the most valuable reference for the next cycle of positioning.
#加密市場下跌15萬人爆倉
$ETH