Defi Turns Red

defi bull bear

Almost all decentralized finance (defi) tokens running on ethereum are down today, this week and this month. What some call a mini bear market in this specialized area of decentralized banking is seeing that usual curve of hype then crash, with it to be seen where the bottom will be found. Bitcoin in a tokenized form is the only one bucking the trend, rising today and this week. The lending, borrowing, flashloaning dapp Aave, however, has seen a fall of some 34% just this week. Compound and the rest are at -20% or so, with Yearn Finance at -75% from its all time high of more than $40,000. Why? The easiest and probably the most correct answer is that they rose too much, too fast, and now have to find a base price from which they can rise again. Many of these coins moreover have huge inflation, with demand simply…

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