Market
Crypto Bloodbath? The Potential Winners are Revealing Themselves
Smart investors are using the current crash to find quality projects.
The launch of $TRUMP on January 17th marked the local top. It sucked liquidity away from other tokens. Since then, every token except BTC has been stuck in a massive downturn.
But if you pay attention, this could be a golden opportunity.
When the market crashes, most tokens get absolutely wrecked. Prices nosedive, fear takes over, and panic selling becomes the norm. But not every token suffers the same fate. Some hold their ground surprisingly well.
And those are the tokens worth watching.
Here are the reasons why:
- Strong demand. If a token holds up during a crash, it means someone—smart money, whales, or insiders—is buying heavily.
- Diamond-handed community. Token holders aren't panic-selling, which means they believe in it. So the future sell pressure will be low as well.
- Outperformance in the rebound. When the market recovers, these tokens tend to bounce back stronger and faster than the rest.
Which are the strongest tokens?
We did some research this morning. First, I took some of the hottest sectors by mindshare.
Then I tracked the percentage change of the top tokens from those narratives from January 17th, the local top. We focused on tokens > $50m market cap.
Some patterns I'm seeing:
• DeFi is holding the strongest by far. PancakeSwap is up. HyperLiquid's up too. This tells me that DeFi's pretty solid to hold at the moment.
• While all Layer 2s are down, Mantle is only -9%. They've announced a ton of recent catalysts such as the Mantle Enahcned Index Fund Proposal and Methamorphosis season 3's coming.
• DeFAI is taking a beating. No way to sugarcoat it. It's the newest sector out of these and got hit the hardest.
Anyways, hope some of this research was helpful. The most important thing now is to survive.
Sponsored by SummerFi
Lazy SummerFi Protocol: AI-Powered Yield Farming for Your Grandma
DeFi is the biggest financial revolution in recent history. But let's be real — most people won't use it in its current form.
For the average person, creating wallets, securing seed phrases, jumping across multiple platforms, and managing transactions is just too much hassle. Even for someone who lives on-chain like me, yield farming often feels like more effort than it's worth.
So, how do we make DeFi more accessible?
Enter SummerFi. They're building a smooth front end to DeFi.
SummerFi Pro is their old product. It gives users intuitive access to main DeFi activities: swap, earn yield, borrow money, and even take leverage. It's great for experienced DeFi users who want to control everything manually.
Lazy Summer Protocol is their second product.
It's designed to be accessible to even normie users. It's like having a smart friend who'll earn yield for you, but even better.
What is the Lazy Summer Protocol? It's an AI-powered yield optimization protocol.
And using it is ridiculously simple:
- You deposit crypto into a vault.
- In the backend, a network of AI keepers will farm yield for you
- Withdraw your principal and yield whenever you want.
That's it. No manual farming, no constant monitoring — just easy, automated yield.
AI Keepers can employ the following strategies to earn yield:
- Lending: Collecting interest by providing liquidity to borrowers.
- Basis Trading: Profit from the price differences between spot and futures markets.
- Rates Trading: Take advantage of interest rate fluctuations in DeFi.
- Yield Farming: Staking or providing liquidity to protocols will generate yield.
Obviously, Lazy Summer has to integrate with other DeFi protocols to access these. It has already integrated with AAVE V3, Spark, Morpho, Gearbox, Fluid, Pendle, Sky, and Compound V3.
In the backend, "The Rebalancer" will monitor yield strategies and deploy assets to top-performing farms. "FleetCommander" will ensure funds are moved responsibly, with limits on frequency and volume.
If you are curious about deeper technical details, check out their documentation. When you first hear about too-good-to-be-true phrases like "easy-to-use" and "automated yield", your reaction might be, "Is this actually safe?"
Short answer: Yes.
Long answer: SummerFi is one of DeFi's most trusted platforms. They're not some random memecoin team looking for exit liquidity. They have a strong track record.
To further ensure security:
- ChainSecurity has audited the Lazy Summer Protocol. You can check out the full report here.
- Block Analytica, a top risk management firm, is handling risk assessment for Lazy Summer's vaults.
Like any DeFi protocol, there are still risks. But Lazy Summer is as secure as it gets in this space.
Why use the Lazy Summer Protocol?
AI is transforming everything. They're making everything faster, cheaper, and better. And it has come for crypto as well.
Using Lazy Summer, you can leverage AI to save time and effort.
#1. Auto-rebalancing will give you a better return than manual farming.
Most of DeFi farms have variable yields. It means that the risk:reward of farms change every minute. To get maximum yield, you need to constantly rotate to better farm.
Doing this manually means: Hours of research and transactions, high gas fees, and unnecessary stress. Or… you could just let Lazy Summer's AI Rebalancer do it for you—ensuring your funds are always in the top-performing strategies.
Click here to see all the rebalancing activity from the protocol.
#2. It has great UX that even your normie cousin can use it.
For normies, even getting started is hard in DeFi. Setting up wallets, securing seed phrases, and dealing with bridges and gas fees repels away most new users.
Lazy Summer removes all those.
- Users can login with Emails, Social accounts, and Passkeys.
- The app will pay the gas fee for the first 10 transactions on Base or Arbitrum.
- Built-in fiat onramps to buy crypto easily.
- Intuitive UI that helps even normies to deposit crypto.
Voila... Now even your grandma can go from a complete noob to DeFi yield farmer with a couple of clicks.
#3. Bonus benefit: Earn $SUMR.
It's the governance token of the Lazy Summer Protocol.
You can earn $SUMR by depositing into any strategy. Currently, they only have strategies for USDC, USDT, and ETH. They're distributing ~215k $SUMR to users per day.
If you wanna learn more about the token, its utility, distribution, and how to earn it, click here.
Important point: until July 2025, $SUMR won't be liquid. It'll help them improve token distribution.
All these promises are great. But I like metrics to back up my theories.
Lazy Summer launched this Tuesday only. Within 3 days they've posted impressive numbers.
- 87 users
- 167 total deposits.
- ~$4M in total value locked
For a 3-day-old project, the fundamentals are looking great.
But in crypto, it is important to have great pumpamentals as well. And Lazy Summer has huge pumpamental potential.
AI narrative will continue to dominate the rest of the cycle. Many of the "AI projects" are just larps. But Lazy Summer is a project that provides real value to users and is actually powered by AI.
When the market picks back up, it'll attract attention to the project as well.
Right now, you can be early to Lazy Summer and earn a higher % of $SMR rewards.
🚀 DeFi Catalysts
Uniswap launched Unichain, their DeFi-focused L2 that'll be part of OP Superchain. $UNI holders can join the staker network and earn rewards as well.
Lido introduced Lido V3. It introduces staking vaults - modular primitives that let stakers, node operators, and protocols coordinate.
HeyAnon has released the public beta v0.1. This is an early stage release and they'll be adding more updates and fixes.
Tether introduced The Legacy Mesh. It is described as the link between USDT deployments and the wider and more efficient USDT0 ecosystem.
Aave has launched $GHO on Base. The expansion was powered by CCIP from Chainlink. They're discussing v3 deployment on Soneium as well.
Meteora has released some updates that will provide better data, faster analysis, and improved security for users.
Story Protocol is launching mainnet today. The $IP claim and checker functionalities will be live today as well.
Mode Network announced new rewards, airdrops, and early access for tokenholders who stake and receive veMODE.
Fluid is discussing a proposal about multichain deployment of $FLUID. They're evaluating solutions from different bridging solutions like LayerZero and Socket Protocol.
Sei has integrated Chainlink and its Cross Chain Interoperability Protocol into the ecosystem.
Elixer has introduced $stELX. It is the liquid staking token for the Elixir network.
📰 Industry News
World Liberty Financial introduced the Macro Strategy. It refers to their accumulating exogenous assets. There are pay-to-play accusations of this strategy as well.
Vitalik's joke tweet about communism caused another controversy. People are interpreting his tweet to be support for the ideology.
zkLend was hacked. They've paused the withdrawals. The full details of the incident aren't out yet.
MegaETH completed the first round of their soulbound NFT sale. Now, MegaETH has raised more money from community rather than VCs and angles.
🐦⬛ X Hits
- Is the AI narrative coming back?
- Crypto as Internet Capital Markets.
- 26 pieces of advice for crypto investing.
- Curve founder's take on DeFi and the future of finance.
- Best yield opportunities for $ETH.
😂 Meme
Until next time,
Edgy
Today's email was written by Edgy and Yayya.
DISCLAIMER: I'm NOT a financial advisor. This content is for education and information purposes only. Crypto and DeFi are risky and speculative. Please do your research before investing.
Whenever you're ready, here are the ways we can help you:
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- 🚀 The DeFi Edge Ventures - We identify, invest, and help amplify DeFi Protocols that positively impact the Crypto space.
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