DeFi Token Price Drops Amid Market Crash
The price of DeFi tokens is plummeting, and most of the blue tokens of DeFi are crashing hard as well amid the cryptocurrency price slump in the market. DeFi is decentralized finance powered by dApps, protocols, financial smart contracts, and digital assets executed on Ethereum. The price trend in the crypto market is on a downward trend, and the uncertainty has also incurred losses of about 8% in Maker, Compound, and Aave. Compound has crashed by 72% since May 2021, and Maker and Aave have dipped by 64% and 68%, respectively. The popular blue-chip tokens of DeFi, including Uniswap, Synthetix, and Sushi, are also suffering heavy losses this week. The top ten DeFi tokens that are currently being traded at the market include Aave, Curve Finance, Compound, Maker, InstaDApp, Uniswap, Yearn Finance, Liquity, Sushi Swap, and Flexa. You can also read these platform reviews. Aave is a decentralized non-custodial liquidity market protocol where users can participate as depositors or borrowers. You can learn more about the Aave crypto lending platform review for more information.
The price crash in DeFi tokens happened when Bitcoin and Ethereum experienced a dramatic drop in prices in May 2021. The Bitcoin price declined when the Chinese government declared a nationwide ban on cryptocurrencies. Ethereum’s price dropped as well despite the launch of EIP-1559. The price crash of the two major cryptocurrencies led to a stagnation in the value of DeFi tokens. The total inherent value of DeFi has decreased over the past few weeks. DeFi Pulse measures the total inherent value by analyzing the smart contracts of every DeFi protocol on the Blockchain of Ethereum. According to the data analysis report of DeFi Pulse, the DeFi ecosystem is currently worth $50.44 billion, of which Maker, Compound, Curve Finance, and Aave is worth over $30 billion. DeFi Pulse helps maintain track of the total inherent value of the smart contracts of different DeFi protocols and applications.