Crypto Index Tracker – DeFi and Smart Contract Platforms Are Down

[ad_1]

HodlX guest message Submit your message

Bitcoin and Ethereum fell 7% and 13% over the past week, respectively. The total crypto market cap has fallen 4.5% in the past 24 hours to a low of around $ 2.3 trillion. Concerns about a hawkish Fed likely contributed to this. Within crypto, movements were not uniform – our smart contract and DeFi indices both registered the largest declines, ranging from 9.3% to 11.5% over the past seven days (see the graphics below). Then it was the Bitcoin-only index, down 7%. The metaverse index fell the least to 6.4%.

Here are the performance details.

DeFi Index – All five coins in our DeFi basket have dropped in the past seven days. Compound (COMP) dropped the most at -17% and PancakeSwap (CAKE) dropped the least at -8%. Metaverse Hint – All five coins in our Metaverse basket have experienced declines. Enjin Coin (ENJ) fell the most at -20% and Gala (GALA) fell the least at -2.4%. Smart Contract Platform Index – All five coins in our smart contract basket are also in the red. Solana (SOL) fell the most to 20% and Polkadot (DOT) fell the least to 9%. Bitcoin Index (BTC) – It has fallen 7% but has notably performed better than Ethereum and Solana recently.

What do the four indices contain?

Here are the clues in more detail.

Bitcoin – The OM of crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market. Smart contract platforms – After Bitcoin, the big innovation was to have more programmable blockchains. These could host smart contracts or decentralized applications and allowed the emergence of the metaverse and DeFi. Ethereum (ETH) is the most popular version of a smart contract platform. We include rivals – Solana (SOL), Cardano (ADA) and Avalanche (AVAX). We also include Polkadot (DOT), which enables interoperability between blockchains and the use of smart contracts via parachains. Metaverse – Pieces associated with creating a virtual space / digital world on the internet using a combination of augmented reality, virtual reality and social media. One of the biggest in this space is Axie Infinity (AXS), which is a gaming platform to win. Another is Decentraland (MANA), which is a virtual world that allows among other things land ownership. The other three coins we include are Sandbox (SAND), Enjin Coin (ENJ) and Gala (GALA). Decentralized Finance (DeFi) – Financial services built on blockchain networks without central intermediaries. This can be a really broad category, so we’re narrowing that down to platforms that focus on lending and borrowing or yield farming. The five pieces we have selected are Aave (AAVE), Maker (MKR), Compound (COMP), Uniswap (UNI) and PancakeSwap (CAKE).

Bilal Hafeez is the CEO and Editor-in-Chief of Macro Hive. He has spent more than twenty years researching major banks – JPMorgan, Deutsche Bank and Nomura – where he held various “world leader” positions and researched forex, rates and cross markets.

Check out the latest titles on HodlX

Follow us on Twitter Facebook Telegram

Check out the latest industry announcements Disclaimer: Opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high risk investments in Bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and that any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in Affiliate Marketing.

Featured Image: Shutterstock / FrameStockFootages

[ad_2]