Over the past month, the median price of DeFi protocol tokens fell by 41.5%, four times the rate of Bitcoin’s decline. Over the last 90 days, the lead was also with the first cryptocurrency — up 8.8% versus 1.0%. Messari analyst Ryan Watkins, citing these calculations, noted the end of the ‘casino’.
What’s clear right now is that there are more sellers than buyers and DeFi’s summer casino could be coming to an end (it’s the start of Fall anyways?).
But let’s zoom out and look at DeFi’s summer in numbers.https://t.co/WhCwaD2hSC
— Ryan Watkins (@RyanWatkins_) September 22, 2020
DeFi token dynamics across different time horizons. Data: Messari.
Watkins noted that over the 90-day horizon, there was a significant advantage in profitability for the blue chips of the DeFi sector such as YFI, LEND, SNX and NXM, over Bitcoin and Ethereum. The laggards in this period were the first-generation DeFi tokens — MKR, REP, and the newly released SWRV, CRV and SUSHI.
The last couple weeks in DeFi have been an absolute bloodbath.
But keep in mind bull markets never go up in a straight line.
In the 2017 ICO boom ETH pulled back 20%+ seven times before it peaked in January 2018.
So far in this bull market we’ve only experienced one.
— Ryan Watkins (@RyanWatkins_) September 22, 2020
The day before, Matt Luongo, founder of Thesis and head of Keep Network, announced the relaunch of the Bitcoin-backed tBTC.
According to the BTC on Ethereum service, the total market value of Ethereum tokens pegged to Bitcoin surpassed $1.1 billion. Over the last week, a record 21,000 Bitcoins were wrapped, according to Dune Analytics. The leading market cap WBTC reached $815.6 million.
Structure of the Bitcoin-on-Ethereum segment. Data: Dune Analytics.
The growth in market capitalization of Bitcoin-backed Ethereum tokens is driven by the drive to provide liquidity for non-custodial exchanges, such as Uniswap.
Earlier in September, Uniswap launched the UNI governance token, which was almost immediately listed on leading centralized exchanges. The hype around UNI became a catalyst for liquidity migration to Uniswap, which returned to first place in DeFi Pulse’s ranking by the volume of locked assets. There is ongoing discussion in the network about developing the third version of Uniswap.
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