DeFi tokens hit hard as crypto market correction continues

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Decentralized Finance (DeFi) tokens appear to be taking the biggest price hits in crypto as yesterday’s market-wide correction continues today.

DeFi is a growing industry that offers traditional financial services, such as lending and borrowing, but without a centralized entity, such as a stock exchange or brokerage.

Blue-chip projects like Aave, Uniswap, Chainlink and Terra all lost 20% or more of their value overnight, according to CoinGecko, falling harder than market leaders Bitcoin or Ethereum.

Just over 24 hours ago, the global cryptocurrency market looked bullish.

Bitcoin was hovering at a price of $ 52,774 while Ethereum ran out of $ 40 to recover the $ 4,000 threshold. Then disaster struck yesterday morning.

El Salvador made Bitcoin legal tender yesterday, but it didn’t have the effect optimistic crypto fans hoped it would.

There was a rapid 13% drop in the total crypto market cap, followed by 11% and 15% losses for Bitcoin and Ethereum, respectively, within hours.

As steep as they are, these losses are not as severe as those felt by DeFi token holders today.

Chainlink, an Ethereum-based oracle network that provides on-chain data for smart contracts, has lost 16.4% in value in the past 24 hours. It is currently worth $ 27.13 at the time of writing.

Uniswap, the token powering the popular eponymous decentralized exchange, took a 14.7% hit overnight. It is currently trading at $ 22.77. More bad news for the DeFi project, which is also reportedly under investigation by the US Securities and Exchange Commission (SEC).

The Aave decentralized loan protocol also fell 12.5%. Aave is currently worth $ 315 at the time of writing.

Elsewhere in the top ten DeFi tokens by market cap, Pancake Swap lost 17.4% of its value overnight to trade at $ 19.222, while Terra depreciated 8.3% to land at 27 , $ 06.

With the market cap of the global crypto market currently down nearly 10%, the nearly ubiquitous double-digit losses among DeFi tokens show that this sector has been hit hard by the current correction.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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