Binance’s Decentralized Finance (DeFi) Coin Index Drops Over 50%
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Answer Binance’s Decentralized Finance (DeFi) Coin Index Drops Over 50%
At the end of last August announced Binance cryptocurrency trading platform announced the launch of a composite index for trading, this index called “DEFIUSDT” consists of several digital currencies for DeFi projects.
DEFIUSDT Index Decreased:
The DEFIUSDT index is currently down more than 50% in just over a month since its launch.
At this point, it is quite clear that DeFi coins are experiencing a severe drop in value.
The field of decentralized finance has witnessed tremendous growth over the past few months, as increased The total value locked into decentralized finance protocols from about $500 million in March to nearly $11 billion at the time of writing.
Read:American Binance Company Obtains a Money Transfer License in Wyoming
One of the reasons for the increase in this closed value could be the emergence of many new projects, which in turn attract many new investors to the arena.
Where we have seen the creation of many projects bearing the name of decentralized finance projects, many of which turn out to be mere blatant frauds.
As we mentioned at the beginning of the article, Binance launched a composite index of DeFi currencies, which tracks and measures the performance of the crypto basket of decentralized finance in a unified manner.
This indicator is currently down more than 50% since its announcement.
Initially, the DEFIUSDT index was valued at $1,189, while it is currently trading at around $530.
Naturally, this is due to a significant decrease in the value of the digital currencies that make up the index during the specified period.
At the time of writing this article, the DEFIUSDT indicator includes some of the most popular decentralized finance cryptocurrencies such as COMP, BAND, KAVA, YFI, RUNE, UNI, BAL, ZRX…
The bad news:
The bad news added to the new Binance drop by more than 50% is that there are some relatively large decentralized finance coins that have caught the attention of the crypto community that are not in the DEFIUSDT index basket and are in turn down more than 50%.
Read:Binance closes crypto derivatives accounts for new users in Hong Kong!
One such cryptocurrency is the SUSHI coin which is behind the popular Decentralized Swap Protocol project which is a split of Uniswap with a private cryptocurrency for governance.
After peaking at around $5 at the beginning of September, SUSHI is now trading at around $0.90, which is a drop of 82%.
Another cryptocurrency not in the DEFIUSDT index basket is the YFL coin where at some point in September the value of this coin was trading at around $1,000, dropping to its current value of $350, a drop of 65%.
In other words, the DEFIUSDT is down over 50%, not including some of the popular currencies that posted big losses.
Read also:
A comprehensive guide to what DeFi is, how it works, and its main uses
How does Bitcoin work in DeFi? And how can it be used?
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