The DeFi composite index of Binance crashed by about 50% in little over a month and there’s even worse news upcoming as we read in our Binance news today.
Later in August this year, the crypto exchange launched its DeFi composite index and got trading under the DEFIUSDT symbol which is now down by 50% in little over a month. At this point, it is quite clear that decentralized finance is where the party is at. The space saw exponential growth over the past month with total value locked in protocols increasing from $500 million in March to almost $11 billion at the time of writing. However, there were also many scam coins that were created in a bid to try and gain during the Defi craze.
Anyway, by the end of the month, Binance launched its DeFi Composite index and It tracks and measures the performance of basket assets in a standardized way. Trading under the DEFIUSDT symbol, we can see it crashed by 50% since the announcement. In the beginning, the index hit a high of 1189 USDT while it is now trading around 530 USDT. This is mainly because the value of the currencies selected for the underlying basked has dropped over the selected period of time.
At the time of writing, the selection of DeFi coins includes some other popular coins like BAND, KAVA, COMP, RUNE, YFI, UNI and ZRX. The bad news is that there are some other larger-cap altcoins and some popular cryptocurrencies that got the community’s attention but they didn’t get into the basket. Their value dropped even more. One of them is SUSHI, the popular decentralized swap protocol which is a UNISWAP fork with the added governance token. Having hit a high of about $5 at the start of September, the token crashed at $0.90 right now marking a 81% decline.
Another token that didn’t get on the list is YF Link. At one point, this token was trading at around $1000 while the current value hovered at $350 marking a drop of around 65%. In other words, the DEFIUSDT index crashed by more than 50% and it doesn’t include other popular coins that have charged the losses as well.
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