The latest data from Santiment shows that the collective market capitalization of all defi-related assets dropped by 25.1% on October 7, while daily trading volumes went down 30.2%. The data also shows popular defi tokens like Sushi took heavy knocks after dropping by 50.9% during the week. Also making the list of heavy droppers is Uniswap’s new token (UNI) which lost 38.2% and the YFI which dropped by 31.3%.
According to Santiment’s Defi watchlist, many of these decentralized finance (defi) tokens have already erased the bulk of their summer gains. Meanwhile, as expected, news of this significant drop in market capitalization has added impetus to the ongoing debate about the so-called Defi bubble. defi critics insist the popularity of this space, which has plagued by scams and faulty contracts, is just hype engineered to enrich token creators and founders. When the hype dissipates tokens will drop in value leaving investors worse off. For example, prior to Santiment’s data release, Twitter users like Alan Silbert had been circulating data which supports this contention. […] Continue Reading