The DeFi markets fell sharply yesterday. DeFi assets have fallen by 25 per cent.
The bubble in decentralised finance (DeFi) continues to shrink. The cryptomarket data company Santiment has seen its market capitalisation of DeFi assets fall by 25 per cent in the course of yesterday alone.
In a blog post on October 8, Santiment estimated that the total daily DeFi token trading volume had decreased by 30 percent. The market leaders Sushi (SUSHI), Uniswap (UNI) and Yearn Finance (YFI) all recorded weekly losses of 51 per cent, 38 per cent and 31 per cent respectively, making them the biggest losers.
„The crypto market has been predominantly in the red this week and most DeFi blue chips have seen double digit losses in the last 7 days“.
While Santiment noted that crypto-twitter has already emphatically declared the death of the entire DeFi experiment, there are „whale accumulations“ in several DeFi assets, including Synthetix (SNX).
Santiment also explained that the combined value of the DeFi assets fell to an all-time low during their last movement on the MVRV block chain. This indicates an „undervaluation“ at current levels.
Recently introduced DeFi indices fell to record lows last week. The DeFi composite index of Binance Futures fell by 20 per cent yesterday. The index has fallen 63 per cent since its first trading day at the end of August.
TokenSet’s DeFi Pulse Index (DPI) also fell 20 per cent yesterday, to a record low of $71. This is a drop of almost 50 per cent since its introduction four weeks ago.