Altcoins: Is the Market BROKEN? $DAM vs $FLUX Yield Discrepancy Explored 📉

So if you take a look at the price of flux, you know, this is the past three and a half years, not the best performing asset on the market. You know, if you compare this to S&P, you can say like, well, S&P went up 8 uh 80% in the past 5 years. What about your token? Um, not great, right? So, and this is three and a half years. Honestly, if you were to include all the time, uh so if you were to include uh the beginning of time, it's not really fair because we only had like one token, right? And if you look at the market cap, um for all the time, you can see, you know, yes, the price was $400 when the market cap was like $20,000. So, you know, for me, market cap is always the most accurate representation of the way the market's doing. And uh really honestly you can see it's been pretty stagnant over the past few years. And I think that's great because you know inflation for flex is at uh 40%. So if you take a look uh you can actually see if it now it's at 40%. So what this means is every year supply of flex will increase by 40%. Uh and this number just goes uh down as you can see as more market uh as more flux enters the market the lower the this percentage is and honestly at this price uh at this point I expected the the inflation to be around 20%. a little bit less and uh it's not and you know I think we're just still feeling that pain and you know originally I said the first four years were the most difficult but I I think now now it's been five almost six and I think it's still challenging with 40%. You know, I think we're feeling the pain, but at the same time, it doesn't feel unreasonable. You know, I I I just think we don't really have that much liquidity. Uh I think overall we have 26 thou uh well, you can actually see on the metrics. Um yeah, you can actually see here. So, uh, in total, we have the same amount of liquidity on both layer 1, layer 2, and they're pretty much arbitrageing each other at this point. So, and even then, like, you know, if you take a look, we only have we only had 700,000 tokens in the beginning of the year and now we have 2.1 million. So, in one year, the supply doubled, you know. So I just wanted wanted you guys to understand that it's yes it's painful but right now you know people that are holding them for not selling it they're just getting three 3%. And for flex like the reason why you know there's still so much value to it is because you're getting 25% in RV flex for holding flex. So, you know, a big portion of Flex is just locked into Mint RB Flex. Like that's the that's how it's working. And I think that's pretty much how it's intended to be working. I'm I'm just happy that's, [laughter] you know, there's no issues there. Um, but you can see overall $49,000 in liquidity. I think it's really great for this market. Now, you have to understand this is this is liquidity gener from users. Like half of that about half of that is is mine. So the rest of it is funded by the community and for me it's almost like there's always people that will exit liquidity and and then you know and I have these conversations and it's just you never know when that's going to happen because of course you know if you just look at the price uh well if you look at that price Jesus Christ uh if you look at a log scale still not that great uh and then if you really just look at like the last few years it's it's actually a lot more stable. So it doesn't go, you know, from $400 to $1 or something. Uh so it's been still pretty good. Yes, it's down, but Ethereum is also down. Um so you know, you just have to think that you know, we just increase the supply this year by by uh almost um was like 50%. So or even 100%. Uh let's see. Yeah, 100%. So this year we doubled the supply. So you know and most of that I'm guessing went to the market. Um you know some people went and use that to mint our reflex and other people they burned it. And we can see that you know um beginning of the year we had 4.7 million burned and now we have 5.5 million burned and as you can see people are still burning. You know there the supply is increasing which is wonderful. uh but the supply only increased by like what a million tokens. So in the past year 25% growth in in total available uh tokens that's not really that much right. Um so I don't know it just uh it seems it seems like the pressure is still there with 40%. And you know and I expect people to take their liquidity you know maybe they just it's very difficult to hold flux liquidity that's why we created liquidity where you just cannot take out that liquidity 97 97% of that uh liquidity is permanent so you know and you know that that's really the token that uh I I don't have to sort of babysit you know I don't have to think like oh is someone going to take that liquid liquidity um it's just you know I just know that there will be this much pressure there is this much um liquidity and uh this these are the numbers right so to me I don't have to rely on the market for flux it's the opposite I would say it's just pure you know user contributions and and it's just you know sometimes they just come in for a few days and then they take it out So yeah, I mean the really the great part right now is we we do have a lot of liquidity on both sides and the arbitrage that happens. Um it's just it's just great, right? Uh so there's always opportunity for the bots to come in and we get some value and uh some volume and you know the bots that are basically playing each other so whoever makes it first and gets the reward. I mean, so it's sort of like the same idea we have behind the day one gems uh games. You know, whoever clicks this button gets a reward. But of course, look at this. Who's getting all the rewards? It's some bot, right? Someone made this bot and it's winning all the money. And you know, all it takes is one person to come up with a more optimized bot, but no one wants to do it. So this guy's going to get all the money, right? So, it's like this uh you know, it's just uh to me it's interesting. You know, there's a there's basically a way for you to create a bot, which doesn't take time. Like, I mean, you can probably just talk with AI and say, "Hey, make me a bot that clicks a button every day, right? You know, it's it's not that complicated. You can probably deploy in a day." But people are still not doing it. So, but someone did it. So, all you need is one person in the world, right? So yeah, I mean it's kind of cool. It's uh yeah, I mean um Flux will always be sort of volatile. I mean DAM is the most volatile and supposed to be, but I don't know why it's performing so well. Like you know it's it's really great. It's if you look like if you buy DAM, you only get 3% in flux every year. Like if you don't burn flux, right? So you only get 3%. And people are still buying dam and they're not buying flux. So, um, it it's just to me this this number basically says either of them is overvalued because, you know, if you're holding a bunch of them and you're getting 3% per year, why wouldn't you, you know, sell now and buy at a different time if that if the price actually goes down lower? Do you know what I mean? It's it's just um there shouldn't be such a big discrepancy. Uh, and it basically says that really there's no not much demand for flex, right? What I'm thinking is as this number goes down, 3%, 2%, 1%, at some point people that hold them, they will just say, "Hey, I'm going to take out my damn. I don't want to make only 1% and and I'm going to sell them and the price of them goes down and then this number goes back up." Right? So, there's should be this fine balance. So to me this basically says uh there's too much demand for them um not enough for flex you know it's just a matter of time it's [laughter] so you know unless there is the people that are like sitting there willing to buy it um it's just this is a very high price for them you can see it even just on the chart you know it's it's going up much faster than the rest of the tokens I don't really know what what that means like if it it continues to go up, you know, does flux follow or is my theory correct and people should be selling at this price? Uh, you know, because you're only getting 3%. So, yeah, it's uh [sighs] it's just I think this, you know, if you just don't look at just the price and then you try to visualize the offering that, you know, it's a unique ecosystem. It's not just a token that you can mint. It's it's you know there's all these uh burns and the lock liquidity inside of the ecosystem and you're just participating in it, right? And I think that's a cool part and hey, if you also look, you know, we just broke 90% inflation liquidity and it's now it's 97.86. So that number is still going down fast. You know, we're expecting it to be 50% this year and you know, I can't wait. like it's, you know, a couple months. I guess we'll see 90%. And uh that's just so fast. Like we only just hit 90% 100%. Now we're going to go, you know, another 10% lower. So yeah, I mean that's pretty much it for this video. I I just uh I just hope you guys see what happens. Uh you know, if you if you want to sell Flux, uh go ahead. There's liquidity. You know, if you want to take out your liquidity, I I also think it's healthy for the market to do that. So, you know, if if you're a community member, you want to take it out. I think that makes sense for me. I think the value uh is there. That's why I own most of that liquidity for lock because you earn 1% on every transaction for from the liquidity and there's so much volatility even now. You know, people are buying and someone's going to go come and sell it and someone's else going to buy it and sell and buy and sell. You get 1% from each transaction. And it really guys that adds up a lot. Uh [laughter] you know it's probably been um sometimes maybe even better than uh holding all that in flux. So yeah I mean um I just think there's so many opportunities. So yeah. Thanks everyone. Happy.