Following a broader market downturn, leading decentralized finance (DeFi) tokens, including Uniswap (UNI), Maker (MKR), and Compound (COMP), have posted significant losses over the past 24 hours.
UNI, the token powering the leading decentralized exchange (DEX) Uniswap, is down 4.4% over the past 24 hours, according to data from Coingecko.
As of this writing, UNI changes hands at around $6.60 apiece with a 28.17% increase in daily trading volumes to $272.93 million. On a weekly note, UNI is still up 8.6% despite today’s hefty blow.
Boasting a market capitalization of $6.6 billion, UNI is the 18th-largest cryptocurrency, per data from Coingecko.
MKR, the DAO token behind the popular decentralized stablecoin DAI, has also lost over 6% in value over the past 24 hours and is the 6th largest loser among the top 100 cryptocurrencies by market capitalization, according to data from Coingecko.
The 63rd-largest cryptocurrency, MKR, currently trades at around $891, with a 10% drop in daily trading volumes.
COMP, the governance token of the robust decentralized lending protocol Compound, posted modest losses of 2.8% over the past 24 hours and trades slightly above $50.40 as of this writing.
Other DeFi tokens, including Chainlink (-3%), Aave (-2.8%), and Lido DAO (-2.9%), have also posted significant losses over the same period.
UNI leads this batch’s token liquidations, with $186,520, followed by MKR at $34,390, and COMP posting $13,260 in liquidations over the past 24 hours, according to data from Coinglass.
Of the total liquidations, the majority of them were blown-out long positions. Interestingly, 100% of COMP long trades have been liquidated over the past 24 hours.
Total Value Locked (TVL), a measure of the total money held across various DeFi protocols on Ethereum, has dropped by 2.27% to $31.25 billion, according to data from DeFiLlama.
DeFi built on Ethereum
A likely factor as to why these DeFi tokens have taken a tumble revolves around Ethereum’s (ETH) bearish performance. Each of these projects are built on top of Ethereum.
According to data from Coingecko, ETH shed over 2.6% in value over the past day and briefly dipped below the crucial $1,500 support level early Friday morning.
As the week’s bullish sentiment fades, ETH’s trading volumes dropped more than 15% to $17.891 billion over the past 24 hours, suggests data from Coingecko.
Bitcoin has followed suit, posting losses of 2% over the past 24 hours.
The recent bull rally in crypto markets appears to have been shaken by new news that more interest rate hikes are in store.
According to Reuters, the U.S Fed will most likely be implementing another 75-basis point hike next week.
The increased interest rate results in attractive bond yields, hindering investors from pouring money into high-risk assets like stocks and cryptocurrencies, including Ethereum and Bitcoin.
Disclaimer
The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
