DeFi Tokens Have Lost a Significant Portion of its Value in October, but an Uptrend is Likely to Happen
The majority of the DeFi tokens lost their significant value in October as YFI and UNI tokens plunged from $23,858 and $4.15 to $10,492 and $2.26, respectively. Market experts believe another uptrend is coming for the decentralized finance markets.
However, there are few DeFi coins that registered a slight bullish pattern in the month of October despite bearish dominance among other coins. Chainlink, one of the top DeFi tokens by market cap, witnessed an increase of 13% last month while Wrapped Bitcoin (wBTC) also performed well in October following the top digital asset called Bitcoin.
Major Tokens Dropped in Price Values
Other tokens, such as UNI, YFI, UMA, and COMP, are left behind in performance. Maker (MKR) is the least affected token as it lost only 8% of its value. The market sentiments went down to the lowest position after a significant loss in coins’ price values. According to experts, when sentiments became totally bearish, chances of a bullish rally become imminent. For instance, when the primary cryptocurrency plunged to $3,600 in mid-March, sentiments reached its lowest position. Since then, traders and investors started HODLing Bitcoin, which resulted in a bullish cycle and pushed price value even above $14,000.
Managing partner at Blockhead Capital, Matt Kaye, states the DeFi coins would see new progress as sentiment in the markets “gets most bearish.” According to Kaye, YFI has gained momentum in market volume while Synthetix (SNX) is showing good performance in the spot market. Increasing exposure of spot markets on the part of traders could point towards a new retail demand.
TVL Reaches $11 Billion
The funding rate in DeFi projects has also increased over recent months as the total value locked over DeFi protocols has reached $11 billion. In a total of $11 billion, Wrapped Bitcoin (wBTC) makes a significant portion. Wrapped Bitcoin is actually BTC which is present over Ethereum’s network. Besides a sharp decrease in DeFi’s tokens, the funding rate has surged significantly as it jumped from $9.66 billion on Sep.1 to the current $11 billion.
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