By Hassan Mehmood (Saudi Arabia)
The majority of the DeFi tokens have started decreasing in values since mid-September. DeFi’s index of Binance has dropped by 50% over the last month.
According to data published by blockchain data firms, the price values of DeFi tokens plunged over the last month. Binance, the largest crypto exchange by volume, introduced a Composite Index to track the performance of DeFi coins in the market, and it is based on the “weighted averages of a DeFi tokens basket.” Binance’s Index has fallen by more than 50% since its creation by the exchange. The Composite Index includes different lending protocols, such as yearn.finance (YFI), Compound (COMP), and Band Protocol (BAND).
As the DeFi coins reached their highest positions, the index touched the highest position of $1,189. Currently, it is standing at $515 due to a decline in tokens’ prices.
Tokens’ Prices have Dropped
According to the data revealed by blockchain intelligence firm CoinGecko, major DeFi tokens, including Uniswap (UNI), Cream (CREAM), Sushi (SUSHI), Curve (CRV), and year.finance (YFI), has dropped from 27% to 55% in their values in just last week.
Also read:After targeting its highest position at $43,600, YFI token is now exchanging hands at around $18,000. Larry Cermak, the analyst at The Block, believes there are no buyers for YFI, and its future is unclear due to its high price. People who were holding tokens are having a lack of confidence and low morale for YFI.
Crypto analyst Johnny Mo argues YFI’s price will go down to $10,000 range as its graphs are not showing well for the future.
Positive Sentiments for DeFi
However, there are many supporters of decentralized finance who still believe DeFi tokens will show a boom in price in the future. For instance, Alex Svanevik, CEO of crypto analytics firm Nansen, showed his belief in industry. According to him, DeFi will win as it “has the lowest barrier to entry.”
He explained that DeFi teams are innovative than Fintech companies. “Fintech companies spend half their time asking for permission from the incumbents,” he added.
Many experts claimed in the past DeFi bubble would not long much. It seems that their predictions about decentralized finance have become true.
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