The decentralized Finance (DeFi) industry seems to be collapsing, with tokens plummeting by 50% or more over the past seven days.
DeFi assets fell sharply Recently, the cryptocurrency market has suffered incredible losses, and market experts have suggested that the DeFi bubble has burst. As several leading tokens, such as Curve (CRV) and Meta (MTA), have lost more than 50% of their cryptocurrency value over the past seven days, speculation about the possibility of recovery has been called into question.
According to Messari, a cryptocurrency market Analytics company, several decentralized Finance assets were investigated. According to an official report, 32 out of 34 DeFi tokens have fallen over the past week, rolling back 50% or more for some assets.
The only digital assets that seem to have experienced a market price increase are PowerPool (CVP) and SushiSwap (SUSHI). However, even SUSHI experienced its own price drop after sushiswap founder chief Nomi liquidated his crypto asset cash profit for ether (ETH), sending the token from a value of about $ 7 to a low of $ 2. According to CoinMarketCap, at the time of writing, SUSHI is trading at $ 2.37.
At least 6 DeFi assets have fallen by more than 50% over the past week, which has been hard for the sector. Messari data showed that Curve (CRV) dropped 65% this week, and other management tokens followed suit: Meta (MTA) suffered 59%, REN – 52%, and AirSwap – fell and lost 51% of its Fiat value.
The high level of volatility and huge sell-offs experienced by the DeFi industry have led many investors to wonder if the craze for decentralized Finance is coming to an end after the incredible growth. At the time of writing, more than 60% of the tokens analyzed by Messari showed a 30-day loss, with Curve (CRV) leading the way.
Ethereum tokens (ETH) also fell in price. According to analysts ‘ findings, only 14 of the 178 markets experienced a surge last week, seven of which were reported to be stable coins.
Will DeFi continue to dominate the market?
According to CoinMarketCap, the UMA token appears to be consolidating around the $ 15 price level, and is currently the largest DeFi project in the industry with a market capitalization of $ 1.3 billion. Although the DeFi bubble seems to have burst, some traders took the opportunity to stock up on discounted tokens. Investors are hoping for a recovery, despite a sharp drop in prices and a decline in the value of 95% of the digital assets of decentralized Finance over the past seven days.