- The recent crypto market sell-off had a big impact on DeFi tokens
- UNI and LINK were among the best performers today as they attempt to recover from their lows
- The DeFi space continues chugging along with rapid innovation
DeFi tokens attempt to recover from crypto market crash
The recent cryptocurrency price crashes affected practically all crypto assets, and the DeFi sector is no exception. Let’s see how some of the top DeFi tokens responded to the crash, and to what extent the sector has recovered.
The total market cap of the DeFi tokens tracked by CoinCodex has decreased by 36% in the last 7 days, and is currently sitting at about $77.7 billion.
If we take a look at how the largest DeFi tokens performed during the period, we can see that the two largest tokens, UNI and LINK, both registered similar losses of 33.4% and 36.7%, respectively.
Some of the established DeFi tokens saw much bigger losses, for example LUNA (-56%), CRV (-54%) and SRM (-54%).
Since the value of practically all crypto assets tanked, it makes sense that the TVL (Total Value Locked) in DeFi plummeted as well. According to DeFi Pulse, TVL on Ethereum-based DeFi apps dropped from $78.6 billion on May 19 to $55.5 billion today.
Today, the price action has been more encouraging, as UNI showed gains of about 12%, and Chainlink improved by 6%.
Speaking of recoveries, we have to mention Maker’s MKR token, which produced a massive bounce from the $1,950 low it hit on May 23. The token rallied up all the way to $4,300 earlier today, before correcting to about $3,750. Still, the fact that MKR more than doubled in price in less than 48 hours is a prime example of the cryptocurrency market’s notorious volatility.
Regardless of the rollercoaster price action, the DeFi sector continues innovating at a rapid pace and there’s no shortage of new projects entering the arena and existing projects launching new products. For example, HashFi has created a platform for Ethereum hashrate tokens, Convex Finance launched their platform for boosting rewards earned by CRV stakers and LPs, and decentralized lending project Teller Finance launched the alpha version of their protocol.
Unfortunately, there have recently also been a number of DeFi exploits in recent weeks, highlighting the fact that decentralized finance is still relatively immature and full of risks. BUNNY Finance was exploited to the tune of $40 million just last week. Rari Capital, xToken and bEarn are other examples of $10M+ DeFi exploits that have happened in May.