Over the last week, the DeFi (decentralized finance) market has been negative. Yes, a red sea has been envisioned for DeFi.
The major tokens in the industry have indicated losses of up to 2 digits in a week. The fall has been accentuated, affecting popular assets such as: COMP, YFI and SUSHI, which registered a reduction in their prices of more than 50%.
In this context, the blockchain analysis firm Santiment has made a report on the unusual behavior of the DeFi industry. Noting that the capitalization of this market has decreased by 25.1%. Which indicates a red sea for the DeFi.
Red sea for decentralized finance?
The volume of trade or daily negotiations has also decreased, says the Santiment report, highlighting that its reduction has been 30.2%. The favorite tokens on the market have been the most affected, as is the case of: COMP of the Compound platform, which in recent weeks reports losses of more than 55% on its price. In the case of Andre Cronje’s Yearn Finance, the YFI token registered a decrease of 31.3%
However, the worst offenders from this collapse have been Curve and SushiSwap tokens. Uniswap, one of the most popular platforms in the DeFi ecosystem, was also affected by the drop, with its token losing 38.2% of its price.
Ethereum fees exceed Bitcoin’s for two consecutive months
Ethereum (ETH) transaction fees exceeded those of the Bitcoin (BTC) network for two months in a row.
Cryptocurrency market data aggregator Messari tweeted about the streak on October 8. And, he noted that it is the longest period in which Ethereum’s transaction fee revenues have surpassed Bitcoin’s in the history of the cryptoasset.
Ethereum fees skyrocketed to new all-time highs during the month of August. As the decentralized finance (DeFi) bubble began to move to a high level. Smart contracts that underpin DeFi protocols often require the execution of multiple Ethereum transactions, compounding network congestion.
Ethereum’s MetaMask joins DeFi and exceeds 1 million monthly users
ConsenSys, the company behind MetaMask, reported that the number of wallet users has seen an annual growth of 400%. Registering more than a million monthly active users in their desktop and mobile applications.
According to the statement published on the MetaMask blog, all the new features recently added to the wallet are considered to have influenced the growth in the number of users. This, considering that at the beginning of 2020 the number of clients was only 250,000.
The trends observed by MetaMask relate to significant growth in the adoption of DAOs, Web3 games, and products related to decentralized platforms (DeFi).
Based on those interests, “MetaMask decided to allow users to buy ETH, store it securely, browse DeFi protocols and exchanges, and connect their wallets directly to these sites to trade.” Points to the statement.
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