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.”
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.