Top DeFi Coins Drop 3-10% Despite Ongoing Bitcoin and Ethereum Surge
- Both Ethereum and Bitcoin have pressed higher over the past 24 hours.
- The two cryptocurrencies have both gained around 5% in the past day.
- This comes as legacy markets like the S&P 500 have pressed higher.
- Despite the rally in the two leading cryptocurrencies, DeFi coins have tumbled lower.
- Ethereum-based coins like Maker (MKR), Synthetix Network Token (SNX), and others have shed 3-10% in the past 24 hours.
- This comes in spite of continued growth in the DeFi space.
Top Ethereum DeFi Coins Drop a Handful of Percent Despite Crypto Boom
According to CoinGecko, some of the top decentralized finance coins based on Ethereum have bled lower despite a Bitcoin rally.
Data from the site indicates that ThorChain (RUNE), Waves (WAVES), Synthetix Network Token (SNX), 0x (ZRX), Maker (MKR), and a few others have all dropped in the past 24 hours. The losses range from three to ten percent.
This drop comes in spite of strength in the price of Bitcoin and Ethereum, which previously brought altcoins higher.
This relative weakness, though, may be explainable.
Jacob Franek, co-founder of crypto data firm CoinMetrics, set on the matter of high transaction fees limiting Ethereum’s upside potential in this phase of growth:
“Not yet just saying it places a natural hard cap on how far this can run. Traders will only pay that much if they’re perfoming significantly well,” Franek concluded in a reply to someone who commented on his opinion.
There’s also been some speculation that the SushiSwap debacle that crypto experienced last week is putting a sour taste in the mouth of investors.
Those investors may have taken money off the table or are less willing to take on risky DeFi bets, hence the drop in the Ethereum-based coins.
Long-Term DeFi Trends Remain Bullish
The long-term trends of the DeFi space remain positive, analysts say.
Qiao Wang, the ex-head of product at crypto research firm Messari, recently commented:
“From an investment point of view, BTC pre-2013 and ETH pre-2015 were once-in-a-lifetime asymmetric bets. DeFi pre-2021 is once-in-a-decade IMO (until proven wrong). If you’ve missed the first two don’t miss the latter.”
From an investment point of view, BTC pre-2013 and ETH pre-2015 were once-in-a-lifetime asymmetric bets. DeFi pre-2021 is once-in-a-decade IMO (until proven wrong). If you’ve missed the first two don’t miss the latter.
— Qiao Wang (@QwQiao) September 9, 2020
Others in the industry think that there are fundamental factors that will drive this crypto market segment to exponential heights in the coming years.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Top DeFi Coins Drop 3-10% Despite Ongoing Bitcoin and Ethereum Surge