DeFi News; Sales continue in DeFi (decentralized) coins. The market cap of the entire DeFi industry has dropped between 20% and 75% of DeFi token prices in the last 30 days. The current value of DeFi coins has dropped from a peak of around $144 billion in mid-May to just under $76 billion.
DeFi, like every other altcoin in the market, is affected by the price of Bitcoin. Although initially it seems to be diverging in other crypto assets, it has not yet separated from other assets.
Wilfred Daye, CEO of Enigma Securities, commented on the Defi industry:
The new tokens have no institutional support. If major coins like Bitcoin and Ethereum fall, DeFi coins will experience bigger drops.
DeFi tokens are not only falling in USD terms, they are also bleeding against ETH.
DeFi; In fact, it is worse compared to Ether in terms of lower returns, volatility in price, and greater declines.
Degen Spartan from eGirl Capital commented on the market as follows:
Most of the investors do not understand DeFi coins and therefore they are not willing to invest. Of course defi will underperform ETH. I expect Defi to outperform ETH but that may not be anytime soon.
In its latest report, data provider Glassnode stated that while the returns from DeFi’s take-and-hold strategies were lackluster, active strategies and active rotation to stablecoins found the buy-and-hold performance to be better than ETH.
Still, some metrics look positive for the market. The locked aggregate value (TVL) of decentralized “blue-chips” Yearn and Aave has already surpassed its highest level as prices fell more than half.
Market values increase as people look for profitable investment opportunities in the absence of price action. DAI hit $6.27 billion this week alone Aave likewise hit a high of $5.36 billion.
New record in total volume of DeFi coins
The total volume of the decentralized exchange DEX just last month exceeded $173 billion, up 109.5% from the previous month. Compared to last year, total volume increased by 67,460% and set a new record.
Jeff Dorman, CIO of digital asset management firm Arca, had the following views:
In mid-June, DEX volumes are fast moving to their biggest-ever level, with DEXs stealing market share from CeFi.
These data are not only short-term and one or two-week data, they override long-term trends in volume, revenue and cash flow.