DeFi Ventures dominated the headlines lately, and the unexpected departure of a high-profile founder has had ripple effects across the crypto market. Here are the most important news from last week:
SUSHI’s equivalent bullish surge came to an abrupt halt when the head of the project shed all of his chips earlier this week, and the resultant sell-off wreaked havoc on the rest of DeFi, ETH And Bitcoin (BTC) From their sites, some of which were high during the year.
However, there is a silver lining to this cloud.
Weekly performance snapshot of the cryptocurrency market. Source: 360 coin
SUSHI’s chef “leaves the kitchen” but can the rest of the cryptocurrency stand the heat?
Sushi Swap, Uniswap’s fork, has successfully migrated Uniswap’s fluidity into its own protocol. There was about $ 810 million in tokens in SushiSwap, or 55% of Uniswap’s cash. By the end of the process, the value in SushiSwap is at an all-time high of $ 860 million, according to DeBank.
Shortly after SUSHI arrived at that unknown upscale founder “Chef Nomi” Withdraw all funds From the company’s coffers (valued at roughly $ 27 million) shortly after insisting that the funds were for development and not being taken from the company, he then insisted to Cointelegraph that he had not pulled out an exit scam. The move led to several Twitter comedians claiming that Naomi has “left the kitchen.”
As expected, the SUSHI token was sold out almost immediately because people lost faith in the viability of the project. The sale was so fast that it blew up the entire crypto asset sector, leading to a drop with the rest of DeFi and even ETH and Bitcoin. At one point, the DeFi as a whole is down about 50 percent From previous highs.
A number of experts have been fairly vocal about the bursting of the DeFi bubble and even compared it to the ICO bubble, saying that people have learned nothing since then.
While the “bubble”, as it is, may eventually burst, it would be too early to describe this as the end of the DeFi era. After all, the likes of Cardano (exist) And even Tezos (XTZYou might join the party one day.
A Rising Tide … finally turns off
Bitcoin and other tokens outperformed most of the year until recently, and the largest cryptocurrency is cautiously and consistently trying to end the week. positively.
Additionally, there are a number of positives to be taken despite the uncertainty in the market after Chef Nome’s surrender, which did not help the feeling at all and caused widespread capital flight amid fears of exit scams.
BTC fell below $ 10,000 after crossing $ 12,400 in the previous week and stalled around a key support level ever since. ETH was more difficult than it, although it dropped from its highest since 2018 ($ 485) just one week ago to $ 322 early in the week before settling between $ 360 and $ 370 over the past few days.
As of Friday afternoon, there are indications that the market is building a solid foundation before attempting to rally. Capital flight from DeFi declined, and the unwinding of leverage positions also reversed, flattening the futures curve.
The rumors of DeFi’s death were greatly exaggerated
DeFi might be down, but it’s barely getting out. New money continues to flow into existing protocols, and there’s no doubt that more is being built. With them will come critical and societal support.
Total value of DeFi unlocked (in USD). Source: Defipulse
There’s also another big difference from the 2017 ICO boom – there’s a more established secondary market. The past two years have seen the digital asset market grow by leaps and bounds, largely due to the rapid maturity of projects and the people behind them.
In the world of DeFi, traders can earn so-called governance tokens in exchange for providing liquidity to decentralized exchanges and lending protocols like Balancer and Compound. Governance tokens can be used to vote on key protocol improvements.
This kind of stimulus wasn’t there a few years ago when people would invest their money in vaporware on a blank sheet and a prayer. Times they change, and DeFi will likely lead the way.