The DeFi [Decentralized Finance] bubble continues to deflate, with cryptocurrency market data firm Sentiment reporting a 25% crash within the market capitalization of DeFi assets within yesterday alone.
Within an official web blog post published 8th Oct., Santiment estimated that daily DeFi token trade volumes have fallen by 30% combined, while recent market leaders Sushi [SUSHI], Uniswap [UNI] & Yearn Finance [YFI] are among the major hit with weekly losses of 51%, 38% as well as 31% respectively.
“The cryptocurrency market has been engulfed within a sea of red this week, with most DeFi blue chips recording major losses over the past 7 days.”
Despite adding that crypto-Twitter has already emphatically declared the death of the whole DeFi experiment, Santiment claims to possess identified “whale accumulation” activity happening around several DeFi assets along with Synthetix [SNX].
Santiment also revealed that the combined value of DeFi assets at the time they last shifted on the MVRV blockchain has dropped to a rock bottom low, “indicating undervaluation” at present price levels.
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 earlier in August.
TokenSet’s DeFi Pulse Index [DPI] also fell 20% yesterday, slumping to tag a record low of over $70 USD – posting a near 50% retracement since launching 4-weeks ago.