Santiment’s latest data shows that the total market value of all defi-related assets fell by 25.1% on October 7, while daily trading volume fell by 30.2%. The data also shows that popular defi tokens like Sushi have been hit hard after falling 50.9% in a week. Uniswap’s New Token (UNI) fell by 38.2%, and YFI fell by 31.3%, becoming the top drop.
According to Santiment’s Defi watch list, many of these decentralized financial (defi) tokens have wiped out most of the summer earnings. At the same time, as expected, news of a significant drop in market capitalization provided impetus to the ongoing debate about the so-called Defi bubble. Critics of the critics insist that the ubiquity of this space is full of scams and false contracts, and its hype is only to enrich the creators and founders of tokens. When the hype dissipates, the value of the tokens will fall, worsening the situation for investors. For example, before the release of Santiment’s data, Twitter users like Alan Silbert had been disseminating data that supported the contention.
However, despite these powerful claims made by critics, supporters of defi insist that the latest price drop only indicates that the market is adjusting and defi still has a future. Daniel Dabek, the founder of Xcalibra Exchange, commented on the recent collapse in the market value of defi that this may be due to a mismatch between the number of tokens and demand.
“The founder of Xcalibra Exchange said: “When the price soars, it is because the number of coins is small to enter the exchange. He added, “It takes time for people to deposit funds and have the ability to bring liquidity. “
Despite this, Dabek is still optimistic about future resistance. He said:
“However, you will see more mature tokens, such as MKR AAVE ENJ AMPL, which are still in good condition, even after TRADE introduces limit orders. There is also a strong demand for UNI, because it is close to 9.00 US dollars. After the high, it is close to its issue price (about $3.00). This space is developing rapidly.”
Long Vuong, the founder of Tomochain, agrees with Dabek, who pointed out that “this may be the first major revision to defi.”
However, Voung quickly added: “As the crypto community expands, defi will become more practical and more flexible because it meets the basic needs of exchanging cryptocurrencies, borrowing crypto collateral, and establishing more new crypto projects. .”
At the same time, after the recent decline in market value, it is not clear whether this correction phase has ended. However, it is worth noting that some tokens appear to have recovered on October 9, 2020 and at the time of writing.
What do you think of the latest defi market value drop? You can share your thoughts in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Twitter, Santiment
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