DeFi Tokens Continues To Remain In Red Zone After Crypto Bloodbath – The Coin Republic

DeFi Tokens Continues To Remain In Red Zone After Crypto Bloodbath – The Coin Republic

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DeFi Tokens

The DeFi tokens have suffered the most wrath due to the crypto crash in the past weeks, even more than Bitcoin. Most of the altcoins are down 90% from their ATHs. The larger crypto market continues to suffer, and the decentralized finance(DeFi) tokens are still roaming in the red zones.

In 2021 when the market was booming, Decentralized Finance(DeFi) projects emerged as strong players; investors rushed towards them, looking at their several use-cases and utilities.

These projects proved to be exactly what the investors had hoped for. They yielded the largest returns to be ever recorded in the crypto market. However, this all came to an end with the collapse of Terra. 

Terra has made a name for itself as one of the largest DeFi platforms in the space, outperforming players such as BSC to grab the second spot just behind Ethereum. LUNA, its native cryptocurrency, has experienced exceptional growth while the UST witnessed adoption. This continued till early May when UST had lost its peg, resulting in the uncontrolled minting of LUNA tokens. 

Terra undoubtedly suffered due to the crypto crash, and DeFi projects suffered from its aftermath. It resulted in a lack of trust in DeFi protocols resulting in investors moving their holdings out of DeFi tokens. After that steep dip in these tokens’ prices could be seen, which continues to date.

Ethereum Becomes The worst-performing Asset…

Following the UST collapse, the leading DeFi platforms are affected by it. Solana, Avalanche, and Ethereum have experienced their value decrease in the last day, turning into the double digits. Ethereum has even become the worst-performing digital asset in the Top 5. 

Solana and Avalanche have suffered the most, with 12% and 18% losses, respectively. At the time of writing, SOL was trading at $41.29, down approx. 84% from its ATH. While AVAX was trading at $22.66, again down more than 84% from its all-time high

The decline in the DeFi tokens doesn’t come as a surprise as its TVL was freefalling too. Other DeFi tokens like BSC, MATIC, Cardano, and Polkadot were down at least 5% in the last 24 hours.

Nancy J. Allen

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