The average DeFi coin has declined by around 75%. This drop came after an exponential rally that saw many early DeFi adopters millions, particularly those who purchased coins like SNX and YFI early. In the last two days, buyers eventually entered the DeFi market with coins in the space recovering dramatically from their recent lows.
Over the last 24 hours alone, about 15 percent of the U.S. Dollars have gone to Aave (AAVE), Synthetix Network Token, Uniswap (UNI) and other names. This makes it one of the most valuable market capitalization crypto assets of the top 100. According to Newsbtc.com, The rally in these coins comes in the face of a strong drop in the price of Bitcoin, which is now down 4.5% in the past 24 hours. Ethereum, for further context, has shed 6% in the past 24 hours. Not all DeFi coins are benefiting from this rally, though. Smaller names such as REN, the token of the Ren Network, and others have actually dropped in excess of 10% in the past day.
Not everyone is convinced the DeFi bottom is in. One crypto-asset analyst, formerly the head of product at Messari, commented in October: “I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see a 80-90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”