Your favorite crypto news blog

Top Defi Dogs YFI, LEND, and UNI Correct Nearly 20%

Other 2020/09/21 22:00 by Tony Spilotro

Bitcoin, Ethereum, and other major crypto assets all plummeted over the last several hours, but few have dropped as hard as top DeFi tokens, YFI, LEND, and UNI.

Why have these once soaring altcoins plunged so hard and is there more downside ahead?

Yearn-Ing For The DeFi Trend To Continue After 20% Pullback

For a while there, it seemed like nothing could put a damper on the flaming hot DeFi trend. Coin after coin exploded in value as interest poured into each new DeFi project.

Some of the most successful highlights of the DeFi space in recent weeks, are Yearn.Finance (YFI), Aave (LEND), and Uniswap (UNI).

Related Reading | Yearn.Finance (YFI) Flies 15% Percent From Local Price Floor, Fractal Targets $60K+

LEND has had some of the strongest year over year performance out of any cryptocurrency, while YFI is now far more expensive than Bitcoin itself.

UNI is the newest of the bunch, but that hasn’t stopped it from first debuting as the crypto version of the stimulus check at $3 per token, then in just days more than doubled in value to a high of over $7. Now, it’s at under $5 after a more than 20% collapse across just about all DeFi tokens.

But what did these altcoins crash much harder than Bitcoin and Ethereum, and other top cryptos?

yfi lend aave yearn finance uni uniswap

LENDUSD Versus UNIUSDT Versus YFIUSD Chart Comparison | Source: TradingView

Why Have YFI, LEND, and UNI Fallen So Hard Compared To Bitcoin and Ethereum?

The crypto market – and even the greater financial market – is a sea of red today after the dollar index bounced hard. The DXY recovering has hit Bitcoin and other top crypto assets hard, even stocks, metals, and more.

The dollar’s recovery is likely investors derisking into a safe haven asset with stability to avoid any election-related volatility.

Related Reading | Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

If investors are derisking en masse and following the advice of top industry analysts, then it isn’t a surprise to see some of the newest, shiniest, and most recently hyped tokens take the brunt of the beating.

These assets are sitting in the fattest profits, just waiting to be taken from paper gains into real ROI. And the reason for Bitcoin and Ethereum holding up better is because some crypto investors prefer to move back into those top cryptos versus taking their capital out of the market and back into cash.

And with many DeFi token investors still in sizable profit, it could only just be the start of a deeper correction.

Featured image from DepositPhotos, Charts from TradingView

2 Like(s)

You should also read...

Crypto 21/07/20 03:00 by Tony Spilotro
Be Wary Searching For The Next DeFi Star Warns Crypto Advisor
Each week, it feels as if another DeFi project becomes the talk of the crypto market with buzz surrounding the astronomical gains these assets keep bringing investors. It’s got investors on the ...
Read More
Altcoins 27/07/20 15:01 by Yashu Gola
DeFi Token LEND Breaks Parabola Support; More Losses Ahead?
LEND, the native token of non-custodial lending platform Aave, fell almost 40 percent from its year-to-date top of $0.384. The plunge followed a steep 2,000 price rise that occurred amid a hype-orien...
Read More
Other 13/08/20 02:00 by Nick Chong
Here’s Why Aave’s LEND Is Up 30% in the Past 24 Hours: DeFi Craze
Decentralized finance — better known as “DeFi” — is back in style once again. This segment of the cryptocurrency market has been surging higher once again, with tokens pertaining to th...
Read More
Altcoins 07/09/20 23:00 by Cole Petersen
Low Ethereum Gas Fees Suggest Investors are Holding Strong Despite Turbulence
Ethereum and the entire crypto market have been battered by Bitcoin’s weakness, with the benchmark cryptocurrency’s decline creating headwinds that have caused most digital assets to post serious ...
Read More
Bitcoin 29/09/20 19:00 by Tony Spilotro
Yearn.Finance (YFI) Could Fall To $15K “If” Bitcoin Brings Down Crypto
Yearn.Finance (YFI) is one of the most talked-about cryptocurrencies of 2020, both due to its scarce 30,000 token supply and its miraculous price increase to more than 1 BTC in value. However, the DeF...
Read More