DeFi market is going through hard times
Yet YTD ROI is still high for many DeFi tokens
Whales are still skeptical about token accumulation
International consortium of news organizations developing transparency standards.
The collapse of the decentralized finance market by more than 25% in just one day can be a good sign for long-term investment, according to Santiment
Run out of Alabama! | Offensive cars | Top Gear | Series 9 | BBC
The market for decentralized finance (DeFi) is a financial service built on blockchain technology that offers users access to an open, efficient and … More carnage. Over the past 24 hours, the sector’s market capitalization has plummeted more than 25%. At the time of this writing, the farm token has lost the most in a day.As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More YAM (-50.7%), YFI (-16.6%) and DMG (-14.3%).
Join our telegram channel to keep abreast of the main trends in the crypto market.
From a global perspective, things look even more dramatic. Of the top 100 DeFi tokens, more than 90 assets suffer colossal losses on a weekly scale. Of those who managed to gain weight despite the massacre were RSV (+ 36.1%), AUC (+ 29.6%) and WGRT (+ 12.9%).
However, Dino Ibisbegovic, head of content and SEO at blockchain analytics portal Santiment, believes negative numbers and pessimistic sentiment surrounding DeFi on Twitter could mean potential benefits for investors..
Pessimism is good
Citing two-year sentiment indicators around Bitcoin, Santiment concluded that a positive attitude towards the asset almost always foreshadowed an imminent collapse in the price of cryptocurrency..
Several peaks in bitcoin price in 2019, as well as in February, April and August 2020 coincided with very positive average sentiment and market euphoria, followed by market declines.
Learn how to trade in the cryptocurrency market with BeInCrypto partner – StormGain cryptocurrency exchange
Ibisbegovic notes that market euphoria is not a good signal for long-term investment in a cryptocurrency asset:
“Over the past two years, most Bitcoin rallies have actually stemmed from very bearish sentiment as crowd expectations were low and the coin was generally considered overvalued by most market observers.”.
Most of the DeFi market assets are in bearish territory, according to Santiment Social Data. Some of them, like SUSHI and YFI, have been in this zone since mid-September, and KNC, REN and SNX tokens even later..
The Dawn of Bitcoin Cash DeFi: AnyHedge and DeToken
The whales swim sideways
Notably, the overwhelming sentiment for many DeFi assets remained negative even before the crash in late September.
Santiment argues that if the DeFi market continues to fall towards bearish sentiment over the medium term, this could bode well for a potential recovery in the above assets. At the same time, as the on-chain metrics show, cryptocurrency whales are not yet very interested in DeFi..
In the event that the first signals for the accumulation of tokens appear, the community should still take a closer look at the assets due to the potential price recovery, the company added..
Despite the weekly crash, the 45 tracked DeFi tokens have grown by 745% since the beginning of 2020, up from 240% in the last 90 days. The short-term picture shows that over the past 30 days, the total loss of these tokens is 8.5%.
What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.
All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..
CONTENTS The total value of the assets blocked in the DeFi segment has again renewed a record high. Perhaps the DeFi industry is preparing to launch a bullish …
CONTENT Other crypto projects have their own claims for DeFi Competitors want to displace Ethereum from the leading position in the decentralized finance…
CC187 – Covering Reef Finance That is Coming to Polkadot
CONTENT India’s largest bitcoin exchange to release its own NFT token NFT token holders will be able to reduce fees on the ZebPay platform Community…
CONTENT NFT tokens will not become an alternative to DeFi tokens NFT tokens are ideal for the show business industry You can make money on NFT tokens by…
CONTENT SushiSwap swears it is better than Uniswap for liquidity mining SUSHI Token Soars From Zero To $ 2.65 In A Couple Of Days DeFi TVL grows 15% to $…