Decentralized finance (DeFi) has become a 2020 phenomenon in the cryptocurrency market. Related to her tokens showed growth by hundreds and thousandspercent in a short period of time. The most striking example is the YFI coin. It was released in July and by September has risen in price by more than 130,000%, from $ 32 to $ 44,000. Now the price has dropped below $ 13,000, writes RBC Crypto.
The fall affected not only YFI, in Septemberthe situation has changed throughout the DeFi market. Tokens began to rapidly fall in price, by the current moment even the most popular representatives of this sphere have lost 50 percent or more of their value. In some cases, the decline has exceeded 90%.
One of the reasons for this decline was probablyoverheating of the market. Almost all DeFi tokens appeared last spring, and in the summer they broke into the top 100 cryptocurrency ratings by capitalization. Now the excitement has died down, and the price has dropped.
Another reason could be the rise in price of bitcoin. In September, its rate dropped to $ 10,000, but then began to rise again and rose over this period by 31%, to the current level of $ 13,100. Perhaps traders began to take profits on DeFi tokens and transfer capital to BTC.
Despite such a sharp drop in pricesDeFi tokens, it's too early to buy them, said Fedor Anashenkov, an analyst at United Traders. He explained that now the attention of traders has shifted towards bitcoin and other popular coins, "everyone is waiting for the rally." On top of that, the DeFi market was heavily overvalued due to the hype, and as soon as capital started to drain, prices collapsed.
“I would not recommend buying right nowDeFi tokens, but keep an eye on them for the future. You need to wait until the search for a new price level is over and look closely at coins where there is no inflation, such as MKR, and avoid algorithmic stablecoins, such as Compound, Balancer, Curve, Maker "- says the expert.
The founder of the stable platform disagrees with him.STASIS cryptocurrency Grigory Klumov, according to whom DeFi tokens are now in a cycle of completion of the correction, and the current fall and distraction of traders by the growth of bitcoin is an opportunity to profitably buy assets.
“There is a lot of hot capital in cryptocurrencies, whichlooking for fast returns and flows from one popular token to another. Therefore, the current shift in the attention of these players to Bitcoin makes it possible to purchase DeFi at attractive prices. ", - said Klumov.
Those wishing to take a chance, he suggested taking a closer look at the depreciated "blue chips" of the DeFi sector. Klumov referred to them tokens AAVE, FRONT, REN, FLAMINGO, LOOPRING and XVS.
On October 28, YFI developer André Cronier releasednew token - KP3R. Its rate soared by more than 15,000% in a few hours, from $ 1.4 to $ 220. By the time of this writing, the price has dropped to $ 146. Users have already invested $ 6.8 million in the asset.
In mid-September, former product manageranalyst firm Messari Qiao Wang called DeFi tokens "the investment opportunity of the decade." He believes that not taking this chance is like not buying Bitcoin in 2013 or Ethereum in 2015, although there is a lot of "junk" in the industry.
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