DeFi yields plummet for Sushi, Curv and ETH coins

As of two months ago, the crypto market space was seeing a DeFi yield at a rate that has never been seen before in the history of the market. During this period, one only needed an erratic food farming strategy to gain bucket loads of percent APY while the more respected pools were making DeFi yields that were far higher than some bank accounts could give out.

However, the market has come crashing back to reality in recent weeks as the yields have suddenly dried up and at a very high rate. For instance, Yearn.finance’s yUSD Vault, cane crashing from 150% to 12% within the space of weeks. This ETH yield asset allows stablecoin holders to earn a returns on their investment in the coin.

What has led to the rapid drop in DeFi Yields?

The main cause of the rapid descent in yield is the drop in value of crypto coins that are minted for the sake of generating returns. This means that the value of coins like Curve’s DAO token, Sushiswap’s Sushi have plunged deeply.

How the market looks presently

Presently in the market, the leading DeFi coins have continued to record abysmal returns with some going as low as 70%, a record high since when the market recorded its all time high.

The market is currently at a state of capitulation as its top coins are also recording a 5%-20% decrease in its value.

This rapid fall has made many liken the yields to the Altcoins and the scams that were widespread around 2013 and 2014. While some think the scales have fallen off the eyes and the grandeur of DeFi is off.

Is this the end for DeFi?

Top market analysts have the opinion that the drops being recorded presently does not signal that DeFi will meet its end in the market any time soon.

Instead, some believe that it would come back stronger to even beat CeFi in equilibrium at the long run. While developers of Yearn.finance have made it known that they are now focused more than ever on newer ways that the yield of the coin would beat its previous records.

Kamsi King

Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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