Yesterday, DeFi markets contracted sharply: total asset capitalisation fell by 25%, volumes fell by 30%.
The decentralized finance bubble (DeFi) continues to deflate, and crypto analyst Santiment reports a 25% drop in overall market capitalization of DeFi assets only yesterday.
In a blog post published on 8 October, Santiment estimated that daily trading volumes of DeFi tokens fell by 30% in total, while recent market leaders Sushi (SUSHI), Uniswap (UNI) and Yearn Finance (YFI) are the most affected crypto assets with weekly losses of 51%, 38% and 31% respectively.
„This week, the crypto market is submerged in a sea of red, and many DeFi tokens have recorded double-digit losses in the last 7 days“.
Noting that Twitter crypto has already emphatically declared the death of the entire experiment in decentralized finance, Santiment claims instead to have identified „whale accumulation“ activities in several DeFi assets, including Synthetix (SNX).
In addition, the company pointed out that the combined value of DeFi assets at the time of the last shift in the MVRV ratio fell to an all-time low, „indicating undervaluation“ at current price levels.
In the last week, the recently launched DeFi indices plunged to record lows, and yesterday the DeFi Composite Index of Binance Futures fell by 20%. To date, the index has lost 63% since its first trading day at the end of August.
TokenSets‘ DeFi Pulse Index (DPI) also contracted by 20% yesterday, reaching an all-time low of $71, and retracing nearly 50% since its launch four weeks ago.