- The crypto market suffered heavy losses over the last few days, with the DeFi tokens absorbing the majority of the blows.
- ApeCoin, Flow and EOS each registered a decline worth between 26% to 30% in the span of a week.
- Binance Smart Chain noted the most drawdown in terms of the total value locked on-chain, which fell by nearly 30% in the last two weeks.
The bearishness observed this week took the market by surprise, in part due to the growth observed in the TradFi markets, which is now negatively correlated to the crypto market. However, amidst all the cryptocurrencies, it was the DeFi tokens that suffered the most.
DeFi tokens take the hit
While the entire crypto market is experiencing a bearish run, with the exception of a few cryptocurrencies, some depreciated more than others. These some belonged to the Decentralized Finance (DeFi) market, which in itself observed a drawdown.
The total value locked in the DeFi markets fell by 5.7% from $69 billion to $65 billion over the past week. Of the topmost DeFi chains, Binance Smart Chain ended up observing the biggest decline, with its TVL plunging by nearly 30% in the span of 10 days. The credit for this decline goes back to the Securities and Exchange Commission, which filed a lawsuit against the exchange last week.
DeFi market TVL
Consequently, over the past two weeks, BSC’s TVL has come down by nearly 30% leaving about $3.96 billion locked on the chain. The regulatory crackdown was the trigger for the broader market crash, which continued this week owing to the announcement by the Fed of pausing interest rate hikes. Surprisingly, the drawdown in the crypto market was against the usual trend but owed the decline to the promise of rate hikes in the future.
However, amidst these events, the altcoins continued bearing the brunt of the bears, with ApeCoin, EOS and Flow emerging as the biggest losers. The DeFi tokens took significant damage losing their value from 27% to 30% in the past seven days.
DeFi tokens at new lows
At the time of writing, ApeCoin price is recovering after marking an all-time low of $2.066 this week. The last line of defense for the altcoin was $2.862, which it lost a week into June, resulting in a week-long decline of 26%.
APE/USD 1-day chart
EOS, too, marked a nearly five-and-a-half-year low after falling by more than 30% in the last seven days. The altcoin is still painting red on the charts, trading at $0.6271. The bearishness is only further growing in the case of the DeFi token and could lead to further decline.
EOS/USD 1-day chart
In line with ApeCoin is Flow which is also observing a historical all-time low of $0.4600 after plunging on the charts by nearly 27% in the past week. The altcoin has already been in a decline since mid-April after losing the Exponential Moving Averages (EMAs).
FLOW/USD 1-day chart
All the cryptocurrencies are still observing bearishness in the market, and if the broader market conditions deteriorate going forward, further declines can be expected. The ongoing tiff between SEC and Coinbase, as well as Binance, could impact the price action negatively in the near future if developments do not go in favor of the exchanges.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption.
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.