DeFi-tokens massively collapsed amid the massacre on the crypto market

CONTENT

  • The crypto market lost about $ 20 billion of its value in 24 hours.

  • DeFi tokens hit hardest.

  • This drawdown was triggered by macroeconomic factors.

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Aggressive selling in the cryptocurrency market has dealt the most painful blow to the decentralized finance segment (DeFiDecentralized finance (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More) highs.

Cryptocurrency markets have lost about $ 20 billion of their value in the past 24 hours. As a result, their capitalization dipped below $ 315 billion at the time of writing, according to TradingView. The good news is that this is not the largest intraday drop this year..

The traditional catalyst for the collapse was the bitcoin rate (BTC). It slipped 5% to the $ 10,400 area, and retains the potential for further decline. This could happen later this week amid the CME futures expiration. Potentially, it is impossible to exclude the fall of the currency in the area of ​​$ 9,500.

DeFi tokens are drowning in the sea of ​​red

Historically, the fall in the bitcoin rate pulls the entire market down with it. Definitely, this week we see another confirmation of this..

A whole line of DeFi tokens has suffered double-digit losses over the past 24 hours. These include LEND, CRV, UNI, SUSHI, BAL, UMA, KAVA, REN, SNX, SWRV and YFI.

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DeFi 7D Loss Leaders $ SWRV -75% $ BZRX -46% $ AKRO -44% $ SUSHI -40% $ RUNE -40% https://t.co/F0hbHeizQf

– Messari (@MessariCrypto) September 21, 2020

This NEW CRYPTO TOKEN is bringing DeFi to Bitcoin?!

This state of affairs has pleased a lot of “old school” bitcoin maximalists, including the representative of the bitcoin community Zack Voell (@zackvoell). He posted a screenshot on Twitter showing the current dynamics of DeFi tokens and commented, “Happy to be poor,” they said before becoming poor themselves. “.

"Have fun staying poor," they said right before they became poor. pic.twitter.com/OGTbMFsZoo

– Zack Voell (@zackvoell) September 21, 2020

Big cabinets fall loud

Meanwhile, the capitalization of the DeFi market suffered the most for understandable reasons – it had where to fall from. Over the past couple of months, this segment has shown the most dizzying growth..

DeFi tokens massively collapse amid the massacre on the crypto market

DeFi Pulse says the total dollar value of assets locked across all DeFi platforms (TVLs) hit a record high of $ 13.2 billion last week..

Top 8 DeFi Altcoins READY to EXPLODE! MASSIVE OPPORTUNITY Cryptocurrency Investors | Ethereum News

At the time of writing, TVL was at $ 9.4 billion, with the Uniswap platform accounting for over 20% of the total. However, the chart looks rather volatile, and a number of analysts believe that TVL is not the best criterion for assessing the performance of a particular project due to the risk of repeated account of funds in various liquidity pools..

DeFi Market TVL Indicator. Source: DeFi Pulse

Commenting on the current situation, the head of DTC Capital Spencer Noon [@spencernoon] noted that the majority of investors are of the opinion that the recent market movements were caused by general macroeconomic factors. Meanwhile, he added, fundamentals for Bitcoin, Ethereum and DeFi continue to be strong on their own..

Crypto markets are red today. But consensus among most instl investors is that this is macro driven; not crypto driven. The fundamentals for $ BTC $ ETH and $ DEFI have actually never looked better.

Some will BTFD. Others will scale in. I expect both will be rewarded handsomely.

MONSTER Altcoin Gem (MOST Bullish DeFi Project May 500x)

– Spencer Noon (@spencernoon) September 21, 2020

In addition, one should not forget that market corrections are a completely natural and inevitable phenomenon, especially after a period of long growth..

Disclaimer

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DeFi-tokens massively collapsed amid the massacre on the crypto market
DeFi-tokens massively collapsed amid the massacre on the crypto market
DeFi tokens massively collapse amid the massacre on the crypto market

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