After having a record-breaking and an all-time high in the previous month, the DeFi dump has increased exponentially as the total worth of DeFi tokens has had a massive 10% reduction; DeFi Pulse made this known via a recent report on the market.
However, compared to other DeFi tokens, Bitcoin is doing better, but most, if not all, of the other tokens, are experiencing a very challenging period. This has prompted leading industry analysts to predict that the DeFi bubble may just have evaporated which has led to the massive DeFi dump.
Presently, the industry is experiencing a situation where previously high DeFi tokens have been cut by over 90%. There have been no breeches in smart contracts, no new token pumps, etc. during the week, which has not happened since months.
What led to the DeFi Dump?
Top industry analyst, Alex Saunders, described the DeFi market as a bubble and advised that traders take cognizance of taking profits at every opportunity they have.
This advice is cogent for traders who should be looking to trade for short term swings and also maximizing profits. Traders who might have been hoarding the DeFi tokens might now be experiencing losses.
Another contributory factor to the dumping would be the avalanche of farmers who were seeking to make immediate gains rather than investors or HODLers who would have invested in the token for its potential and growth.
What future does DeFi have now?
If anything has become more evident, it is that DeFi has had more demand this year and that people are looking at it beyond farming and as a quick cash cow. And with most countries in the world moving from debt into another, the future appears bright for DeFi.
However, its recent collapse shows how volatile the tokens can be, so there would be a need to change how the industry works by adding new policies and regulations that would seek to remove the plagues of ill that may be wrecking DeFi presently.
This post was last modified on October 8, 2020 3:20 pm