In the opinion of market participants and specialists, this is indicated by the negative dynamics of the indicators of the decentralized finance market.
The decentralized finance (DeFi) bubble began to deflate. Sentiment project specialists came to this conclusion, against the background of a recorded decrease in the capitalization of startups representing the direction by 25% and a drop in the trading volume of their tokens by 30.2% per day.
2) all-time low MVRV's, indicating undervaluation at these levels. Whale accumulation is also worth taking a look at for projects like $SNX, showing notable movement. Read our findings above on the best buy opportunities after the dip. https://t.co/UqUOcSGQRa
— Santiment (@santimentfeed) October 8, 2020
Analysis of the behavior of DeFi projects showed that over the past week, the loss of value of many tokens has reached double-digit numbers.
Sentiment team drew attention that during the week investors of tokens suffered heavy losses, to which the attention of many members of the crypto community was recently riveted. For example, the cryptocurrency rate of the SUSHI startup fell by 50.9% in 7 days. The Uniswap token (UNI) lost 38.2% of its value over the same period of time. The cryptocurrency of the equally well-known DeFi project YFI, in turn, fell by 31.3% over the week.
Against the backdrop of the negative movement of popular startups in the decentralized finance market, many members of the crypto community agreed with the opinion that the DeFi bubble began to deflate.
Note, the loss of the value of many popular DeFi projects does not concern everyone. For example, negative changes did not stop the team at investment company Pantera Capital from shifting their focus from traditional cryptocurrencies to DeFi.