It’s been a tough past few days for the DeFi market. Top decentralized finance coins have surprised most of their holders, actually dumping despite a relatively strong performance by Bitcoin.
In the past three days, BTC has gained over 5%, surging from $11,300 to $12,000 at the recent highs. Altcoins are not partaking in strong BTC price action for the first time in many months, suggesting to some commentators that a shift has taken place in how crypto investors allocate capital.
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DeFi Coins Crash as Bitcoin Inches Higher
Chart of bTC's price action voer the past few weeks. Source: BTCUSD from TradingView.com
Unfortunately for bulls, the coin has yet to hold above $12,000 decisively. $12,000 has long been an important resistance level for Bitcoin, having acted as the top of multiple rallies such as the one in the summer and the 2019 rally, which actually topped on a weekly basis around $11,500.
DeFi coins have not done as well as BTC over recent days. The DeFi perpetual future on FTX has dropped 20% in the past week, with Yearn.finance (YFI), Ren’s REN, Synthetix Network Token (SNX), and Compound (COMP).
DeFi coins are some of the worst performers in the crypto space. Even cryptocurrencies that arguably have little use cases have only dropped a few percent in the past few days while DeFi has plunged lower.
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DeFi Fundamentals Strong
The fundamentals of this space remain strong despite the weak price action.
The number of active MetaMask users recently passed one million largely due to DeFi. As NewsBTC reported previously:
“Additionally, over the last twelve months, significant growth in the adoption of DAOs, Web3 games and the rapid consumer uptake of DeFi products and services has further accelerated our growth curve. It’s not just the ability to buy and store Eth that’s powering our new phase of growth. When you think about it, people don’t really want a wallet. They want to invest, sell, lend, borrow. They want to use sites like Uniswap, Yearn, Curve, Maker and Aave to get that job done. MetaMask is simply the connective tissue.”
Adding to this, on-chain trends show a strong increase in DeFi users.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top DeFi Coins Crater 15% Despite Bitcoin Passing $12,000