Binance Futures DeFi Composite Index Plummets 20%
Crypto market data provider Santiment has reported that market cap of decentralized finance (DeFi) protocols have lost over 25% within 24 hours.
Santiment, in a blog post, based on its assessment, has stated that trading volumes of daily DeFi tokens have declined by 30% overall, while latest market toppers such as Sushi (SUSHI), Uniswap (UNI) and Yearn Finance (YFI) were the worst hit tokens with weekly drawdowns of 51%, 38% and 31%, respectively.
“The crypto market has been engulfed in a sea of red this week, with most DeFi blue chips recording double digit losses over the past 7 days.”
In spite of pointing that crypto-Twitter has vigorously adjudged the end of the total DeFi trial, Santiment asserts that it has spotted “whale accumulation” moves happening across multiple DeFi assets, Synthetix (SNX) for example.
Santiment also underlined that the aggregate value of DeFi assets at the time they finally moved on the MVRV blockchain has declined to a historical low, “indicating undervaluation” at prevailing price levels.
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
DeFi indexes launched in recent times plunged to record lows last week, with Binance Futures’ DeFi Composite Index plummeting 20% yesterday. The index has now declined 63% from the day of listing in the last week of August.
Likewise, TokenSet’s DeFi Pulse Index (DPI) also declined 20% to hit a new low of $71 yesterday, reflecting a drawdown of 50% since the high recorded at the time of launching four weeks before.