DeFi Ventures Lose Sheen as Crypto Market Undergoes Correction
It seems the DeFi (decentralized finance) craze has come to an end for the moment, with 50% of top DeFi tokens losing more than 50% of their value (in terms of US dollar) in the past week.
As per Messari, which provides crypto market data of DeFi assets, 32 of 34 projects losing value last week, with PowerPool (CVP) and SushiSwap (SUSHI) being the only two DeFi ventures to post weekly gains.
Out of several DeFi projects which faced heat, Curve was hit severely with a decline of 65%. It was followed by Meta, which posted a loss of 58%.
Other DeFi ventures, which got beaten severely, include Ren – 52%, AirSwap – 51%, and bZx Network and Wrapped Nexus Mutual with a drop of 49% each.
Rough week in DeFi land with 6 assets dipping more than 50% + over the last 7 days
Where are we going next? pic.twitter.com/3vJiqb4xhr
— Messari (@MessariCrypto) September 8, 2020
The sell-off has wiped out the gains made by a majority of DeFi ventures last month, which saw record volatility, with over 60% of the tokens listed covered by Messari posting a monthly loss at the time of writing this article. Curve, once again, tops the list of monthly losers with a drawdown of 58%. It is closely followed by Bancor – 57.8%, Kava – 50% and Meta – 46%.
Notably, Ethereum (ETH) tokens too declined last week, with only 14 of 178 cryptos recording a gain. Seven out of 15 cryptos are stablecoins. Only two tokens hosted on Ethereum blockchain recorded double-digit gains. They are ZB and Origintrail, which appreciated about 15% each.
Not even one-third of Ethereum blockchain based cryptos were able to hold on to their monthly gains. The document published by Messari invoked a flurry of tweets, with user nicknamed ‘stakthosesats’ stating:
DeFi is going straight into the ground. Just another series of scams.
— stack those sats.HODL (@stackthosesats) September 8, 2020
Nevertheless, many crypto traders consider the DeFi market slump as an opportunity to increase their holdings, with a user nicknamed ‘Ms. Coins’ stating
Great time to scoop up some at those prices!
— Ms. Coins (@NGNJ18) September 8, 2020