On October 7, the market capitalization of tokens of decentralized-finance protocols collapsed by 25.1%. Trading volumes for them fell by 30.2%, according to Santiment analysts.
1) Our data indicates that the collective market cap of all DeFi-related assets has shrunk by 25.1% yesterday alone, with daily trading volumes down by a combined 30.2%. $COMP, $YFII, $YFI and $SUSHI are among those in the wreckage that are showing pic.twitter.com/BzTOFTO8Gf
— Santiment (@santimentfeed) October 8, 2020
Over the past week, the vast majority of DeFi tokens recorded double-digit losses. The main laggards were the tokens of the projects Sushiswap (SUSHI), Uniswap (UNI), and yEarn.Finance (YFI). They declined by 50.9%, 38.2%, and 31.3%, respectively.
From their all-time highs, the median price of DeFi tokens has fallen by more than 60%.
“DeFi not a bubble” pic.twitter.com/tv3ekErbnN
— Crypto Godfather 教父 (@CryptoGodfatha) October 7, 2020
As of writing, the DeFi Pulse Index is down 27% over the past seven days.
DeFi Pulse Index dynamics. Source: TokenSets.
Some, in such negative momentum, found validation of their bleak forecasts of a bubble bursting.
2) all-time low MVRV’s, indicating undervaluation at these levels. Whale accumulation is also worth taking a look at for projects like $SNX, showing notable movement. Read our findings above on the best buy opportunities after the dip. https://t.co/UqUOcSGQRa
— Santiment (@santimentfeed) October 8, 2020
FTX chief Sam Bankman-Fried stated that for the further development of the DeFi sector it is necessary to engage more with users, and not only focus on creating incentives in the form of governance tokens.
At the end of September, ForkLog held an online conference \”DeFi: A User’s Guide\”. Its participants agreed that DeFi tokens have ceased to be a measure of a project’s success.
Other takeaways from the speakers can be read at the link.
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