The Defi dump started officially as most of the coins have dropped by 50% in one week as we saw in our recent altcoin news.
The DeFi frenzy seems to have started to slow down as some of the top tokens in the sector took heavy losses. The cryptocurrency markets continue to pull back and the fastest climbers in the last month became the ones that fell the hardest. The Defi dump started as the tokens crashed by more than 50% despite the gains across digital assets markets between the rally.
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
Over the past week, the total market capitalization for all cryptocurrencies corrected by 20% from 2020 and the 26 month high of $40 billion. Bitcoin’s failure to top the $12K and ETH’s fall resulted in the market’s bleeding. The research conducted by Messari crypto has noted that it was a rough week for the Defi sector with six of the major tokens dumping 50% for the time being. The curve finance token CRV is the biggest loser as it crashed by 65% during the past week. According to Uniswap.info, the CURVE token hit $50 after it was launched at the end of August. CRV has, however, crashed by more than 95% to less than $2 today.
The rest of the crashers include BZRx, MTA, REN, AST, and WNXM. These are not the only tokens that crashed as BAL, KAVA, BNT, UMA, YFI, and KNC all lost about 40 percent. It should be noted that most of the tokens surged quite a lot for the year so a correction is healthy for them. SuShiswap for example went down by 80% on the week as the recent price action did nothing for the investors when SUSHI founder sell off his tokens. after the launch, the coin prices increased to more than $11 but the short-term lived existence they crashed to $2.00 today.
The protocol is getting near to a migration event that will take it off the Uniswap protocol and onto its own one which will entail transitioning to a multi-sig governance wallet. According to the research by Glassnode, despite the low prices today, SUSHI is still overvalued because of its inflationary economics model. The on-chain analytics provider suggested a fairer price at $0.31 for this token.
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