Some DeFi coins, which have been very popular in the crypto money industry in recent months, have lost half of their value in the last 7 days. This picture reminds us “Is the DeFi wind coming to an end in the second quarter of 2020?” brought the question.
With the 56% market dominance, the entire market experienced a sudden retreat, as Bitcoin failed to overcome the resistance of the $ 12,000 threshold and experienced a serious decline. With both the impact of the BTC drop and scandalous news from new DeFi projects, many DeFi platforms have also suffered serious value losses.
According to the data shared by Messari; most DeFi tokens dropped by about 50%. The growth of over 100% recorded by DeFi coins, led by the outstanding performance of yearn.finance (YFI) last month, has thus largely melted.
32 of 34 projects are minus
The firm Messari, which shares data from the crypto money market, this time published a table for DeFi assets. In the table, it can be clearly observed that all projects, except for 3 Defi tokens, have closed the last 7 days with negative values. The two protocols that do not lose value according to the current table are PowerPool (CVP) and SushiSwap (SUSHI). The most losing DeFi project is Curve (CRV), with a 58% decrease. The Curve is followed by Airswap (AST), Rhine (REN), Acropolis (AKRO) and Meta (MTA) with close to 50%.
The situation did not change in the 30-day losses announced by Messari afterwards. Although a ratio of 32/34 is not observed, it has been shown that many projects are in large scale decline. Curve was the head of the 30-day list with a loss of 60%, followed by Bancor (BNT) and Kava (KAVA) with rates over 50%.
Are There Any Effects on the Ethereum Downgrade?
As DeFi projects, which were mostly built on the Ethereum (ETH) base, began to gain popularity, ETH transaction fees started to fly. But according to most experts, that’s not the only impact DeFi platforms have on ETH. Ethereum price, which exceeded the $ 475 threshold by reaching the record for 2020 last month, returned to the $ 320 band after the market collapsed last week.
With a market value of 20% of the leading altcoin with a total market value of approximately $ 40 billion, the DeFi sector inevitably affects the ETH price. The domino effect, which resulted in the ETH price depreciation by more than 25% in the last 7 days and Bitcoin’s decline of about 2 thousand dollars, may have been reinforced with the start of the DeFi projects.