Defy projects dominated the headlines until late, and the unexpected departure by a high-profile founder saw ripple effects across crypto markets. Here are the top stories from last week:
Sushi’s parabolic boom came to a sudden halt earlier this week when the project’s head crashed into all of its chips, and the resulting celloff knocked down the rest of DFE, ETH and Bitcoin (BTC) from their influence, some of which were the highest. Year.
There is a silver lining on this cloud, though.
Weekly performance snapshots in the cryptocurrency market. Source: Coin360
The sushi chef “leaves the kitchen” but can the rest of the crypto heat up?
Uniswapp Fork SushiSwap successfully transferred Uniswap protp fluid to its own protocol. Sushiswap had about M810M tokens, or 55% of Uniswap liquidity. By the end of the process, the value in Sushiswa had reached an all-time high of about $ 860M, according to DeBenk.
Shortly after Sushi hit that high, the anonymous founder “Chef Nomi” immediately withdrew all funds from the company’s coffers (about $ 27 million), saying the money was for development and would not be taken from the company, and then insisted to Syntegraph. He did not pull the exit scandal. As a result of the move, many crypto comedians on Twitter claimed that Numi had “left the kitchen.”
As predicted, the sushi token sold out almost immediately as people lost faith in the viability of the project. The selloff was so fast that it torpedoed the entire crypto asset sector with the rest of DFI and also ETH and Bitcoin. At one point, the overall deficit was about 50 percent lower than the previous high.
Many experts were raising the voice instead of bursting the DeFi bubble and even comparing it with the ICO bubble saying that people have not learned anything since then.
When that “bubble” can finally pop, it would be premature to call this the end of the Defy era. After all, the likes of Cardano (ADA) and Tezos (XTZ) may one day join the party.
A rising tide finally comes out
Bitcoin and other tokens have been nice for most of recent years, and the largest cryptocurrency is carefully and steadily trying to end the week on a positive note.
Additionally, many positive questions have been raised despite market uncertainty following the cutoff of Shuff Nominee, which was not due to a spirit of help and caused a broad-based capital flight amid concerns of exit scams.
BTC jumped below, 12,400 a week ago and has been hovering around key support levels ever since. ETH has a long way to go, however, before settling between $ 50 and $ 0.00 over the last one day, just a week ago, it fell from its post-2018 high ($ 485) to a low of $ 322 at the start of the week. Has reached the surface.
As of Friday afternoon, there are indications that the market is building a solid foundation before trying to make it more personal. DFI’s capital flight has weakened, and futures have been flattened by the turn of the lending positions.
Rumors of Daphne’s death have been exaggerated
DeFi may be down, but it’s barely out. New money continues to flow into existing protocols and, no doubt, more is being built there. They will be accompanied by financial and community support.
DeFi total value locked (USD). Source: Defiples
There is another big difference from the ICO boom of 2017 – there is a more established secondary market. The last two years have seen growth by jumps and bounds in digital asset markets, largely due to the rapid maturation of projects and those behind them.
In Defy World, traders can earn so-called governance tokens in exchange for providing liquidity for decentralized exchanges and lending protocols such as balancers and compounds. Governance tokens can be used to vote on amendments to internal protocols.
This kind of incentive didn’t exist any years ago when people were investing money for steam on white paper and prayer. At which point they are changin, and DFE could potentially lead the way.
