DeFi market cap drops 25% in one day
The decentralized finance (DeFi) bubble continues to deflate, with crypto market data firm Sentiment reporting a 25% crash in the market capitalization of DeFi assets during yesterday alone.
In a blog post published Oct. 8, Santiment estimated that daily DeFi token trade volumes have fallen by 30% combined, while recent market leaders Sushi (SUSHI), Uniswap (UNI) and Yearn Finance (YFI) are among the hardest hit with weekly losses 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.”
Despite noting that crypto-Twitter has already emphatically declared the death of the entire DeFi experiment, Santiment claims to have identified “whale accumulation” activity taking place around several DeFi assets including Synthetix (SNX).
Santiment also noted that the combined value of DeFi assets at the time they last moved on the MVRV blockchain has dropped to an all-time low, “indicating undervaluation” at current price levels.
Recently launched DeFi indexes slumped to record lows this past week, with Binance Futures’ DeFi Composite Index crashing 20% yesterday. The index has now fallen 63% from its first day of trading in late August.
TokenSet’s DeFi Pulse Index (DPI) also fell 20% yesterday, slumping to tag a record low of $71 — posting a near 50% retracement since launching four weeks ago.
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