It’s a sea of red in the DeFi market, although Bitcoin and most altcoins also suffer losses
Despite reaching the second largest monthly close in its history in October, Bitcoin (BTC) has corrected itself heavily and is currently trading around $ 13,300 – 1.85% down in the last 24 hours and around 5% since the bullish cross. weekend for $ 14,100.
However, the Bitcoin price correction is notably unmatched by the drop seen in the decentralized finance (DeFi) space today. The data also shows that the total trading volume recorded on the main decentralized foreign exchange platforms (DEX) has decreased.
DeFi market sinks in red
The bloodbath in the decentralized financial market continues the downward trend that the roller coaster, that is, the DeFi frenzy, has been experiencing for almost two months.
After most of the tokens reached ridiculously high prices in July and August, September saw many price drops and in October, most had lost more than 50% of the value they had traded at the peak.
Analysts point to the capital rotation in a BTC rally as one of the reasons for the drop witnessed in the DeFi space. On Tuesday, November 3, Messari summed up the situation simply tweeting: “DeFi blood has been spilled”. The analytics provider shared the following overview, indicating that most tokens have decreased by more than 10%.
The main DeFi tokens decreased by double digits. Source: Messari
The curve (CRV) fell 15% to $ 0.348; Synthetix (SYN) was trading around 14% in the red at $ 2.51 and SushiSwap has dropped over 13.7% in the last 24 hours, trading around $ 0.529.
Other important DeFi tokens in red are Compound (COMP) with its price 11.32%, Aave (AAVE) -11.24%, yearn.finance (YFI) fell 10.45% to $ 9,510 and Uniswap lost 10.23% to trade around $ 2.10.
With the fall in prices, the volume of business in the decentralized exchanges also fell. According to data from Dune Analytics, the volume of DEX fell 26% in October, from about $ 26.27 billion in the previous month to about $ 18.17 billion. In the last 7 days, the metric has dropped 60%, while it has dropped 10% in the last 24 hours.
Cryptocurrency markets are largely in red territory today (Tuesday, November 3, 2020). Source: Coin360
The broader altcoin market has also seen an increase in pressure from sellers over the past 48 hours. Ethereum (ETH) fell 6% to fall below $ 375 and could fall further if bears take over.
The Ripple (XRP) bulls, on the other hand, are struggling to prevent a fall below $ 0.23. Among Bitcoin forks, Bitcoin Cash ranked fifth has dropped more than 9% in the last 24 hours to trade for around $ 240, while Bitcoin SV is more than 8% down at the time of writing.