According to comparison data, in the past week, the crypto market has been weak as a whole. The prices of all cryptocurrencies have fallen by nearly 3% on average, while DeFi assets have suffered a greater impact. The top 10 DeFi assets lost an average of 23.4% last week. In the past 30 days, its average loss was 27.44%.
The popular DeFi project YFI performed the worst last week, with a drop of 36.93%, and the price has fallen below $15,000. In the past 30 days, UMA has been cut in half, falling nearly 60% to 6.04 US dollars.
The industry generally believes that the DeFi bubble is bursting, and the price of many DeFi assets may usher in a plunge. Because after the strong speculative activities in the previous months, cryptocurrencies usually experience long or short corrections, and their value will drop significantly due to sudden changes in supply and demand.
According to data from DeFi Pulse, the total value of the locked assets of the DeFi project has fallen to 10.1 billion U.S. dollars, which has lost more than 1 billion U.S. dollars compared to the 11.2 billion U.S. dollars at the end of last month. However, just like the ICO bubble in 2017, some projects will continue to develop and will usher in their own opportunities in the future.
There are some investment companies that are still optimistic about the prospects of DeFi, Pantera Capital is one of them.
Pantera Capital believes that most of the growth in the next bull market cycle will be generated by DeFi, and stated that their bets on DeFi exceed other markets.
At this week’s web conference, Pantera Capital Chief Investment Officer Joey Krug said that unlike other funds that deploy most of their investment portfolios on value storage tools such as Bitcoin, Pantera is ready to bet on DeFi.
He said, “If you look at the construction of investment portfolios, we can see that we have placed different bets on digital asset funds relative to the market. Most markets are basically payment and value storage, such as Bitcoin, Bitcoin Cash and so on. To a large extent, we value smart contract platforms, decentralized finance, and open finance. We think this kind of growth will appear in a bull market.”
At the same time, Dan Morehead, CEO of Pantera, believes that the influx of fiat currencies in the economy has pushed up the price of cryptocurrencies. Pantera expects that the price of cryptocurrencies will rise more strongly in the near future. “We believe that the next two to There will be a huge rebound in three years.”
The DeFi boom this summer was driven by liquid mining, decentralized exchanges, and non-homogeneous tokens. In the absence of hype in the market now, the temporary silence of DeFi seems to be taken for granted. However, at the end of this year, there may still be some events that will promote the recovery of the DeFi market.
The first is the overall bullish trend of the crypto market. Although the current trend is struggling, the industry is still bullish on the major cryptocurrencies represented by Bitcoin, especially in the context of macroeconomic inflation.
Second, the U.S. election to be held at the end of the year is also an unknown factor that may have an impact on the global market. Biden and Trump have significantly different policies and views on how to manage the economy and the country. The election results may have an impact on the global market. Serious impact.
In addition, the upgraded version of the Ethereum network, the cornerstone of DeFi assets, Ethereum 2.0 is gradually making progress. Once it can greatly increase the throughput and scalability of the existing network and reduce transaction costs, the DeFi field will undoubtedly usher in another spring.
