DeFi Bubble Burst?

[istiak2277]

We have witnessed a massive popularity regarding DeFi projects, but it's seems that DeFi hype is over. For the past week DeFi tokens plunged massively.

Loses over the last week:
Chainlink: 12%
Aave: 19.5%
Uniswap: 32%
Yearn.Finance: 44%
Compound: 20%
Uma:33%

Read more: https://www.worldcoinindex.com/nl/news/defi-tokens-plunge-in-a-wide-sell-off-is-this-the-defi-bubble-burst

The DeFi market is bleeding but everyone is not affected by it. Some made a good amount of money in this hype and exit when they have profit. DeFi just slows down and it's not the right time to say its just a bubble. It could be a whale's market manipulation so that they can buy them at a low price. DeFi project has practical use so it's not totally worthless.

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[ijeb]

Overall, it was not so bad. The hype attracted a lot of new users and some of them are still willing to learn even after the burst but on the other side of the coin, a lot of money was lost.
I only hope that this will stabilize the market and we'll see a normal growth from now on.

[sayulita]

The DeFi market is bleeding but everyone is not affected by it. Some made a good amount of money in this hype and exit when they have profit. DeFi just slows down and it's not the right time to say its just a bubble. It could be a whale's market manipulation so that they can buy them at a low price. DeFi project has practical use so it's not totally worthless.

Not all of the DeFi projects have a practical value, some are just like those ICO tokens that were not good for anything and still got millions in the ICO round with the help of public hype. I guess it is the cleansing round where the market is under correction and once it is done then only those DeFi projects will remain which are having a genuine use like Link, UNI and BZRX token both are good tokens and have a good future as well and the price is surely gonna rise with the increase in number of users.

[poodle63]

Overall, it was not so bad. The hype attracted a lot of new users and some of them are still willing to learn even after the burst but on the other side of the coin, a lot of money was lost.
I only hope that this will stabilize the market and we'll see a normal growth from now on.

you can't even generalize if all of the newbies will be getting the same story as some newbies have complained about so many scam projects that appeared during this hype.
The market will never be stable as when the new trend is going to be an outdated trend and there will be a new trend will appear in the future.

The problem is how can we prevent the scam project? It's not enough with just spread the awareness. Some new users are also going out from the market too and it's not all of them wanna try to learn.

[G.Belaci]

Uniswap: The price of the token of this project has been changing rapidly over the last month, so it is not entirely correct to estimate recent price changes. Tokens continue to be distributed as a reward to participants for using the Uniswap project
https://app.uniswap.org/#/uni
This will last another 36 days, you have to wait until the distribution stops and we get the real market price

Chainlink:I think that now the price is too high

Yearn.Finance: 💩💩💩 

Uma:I didn't have time to buy at the beginning, but I understood that the price would fall, so you need to watch out when a good reason to buy comes

Yearn.Finance even dropped further to 56% for the past 30days...

[cryptoknightt]

all market is bleeding now, and last 7 day i see only bitcoin starting to rise. and ofcourse altcoin specially defi is the worse down in this market.
but if they star rising defi is the first to gain more than other coin. because hype defi still exist.

[slackovic]

Overall, it was not so bad. The hype attracted a lot of new users and some of them are still willing to learn even after the burst but on the other side of the coin, a lot of money was lost.
I only hope that this will stabilize the market and we'll see a normal growth from now on.

you can't even generalize if all of the newbies will be getting the same story as some newbies have complained about so many scam projects that appeared during this hype.
The market will never be stable as when the new trend is going to be an outdated trend and there will be a new trend will appear in the future.

The problem is how can we prevent the scam project? It's not enough with just spread the awareness. Some new users are also going out from the market too and it's not all of them wanna try to learn.

No one can prevent scam projects showing up when there is hype about something. The biggest problem is differentiating a scam project from a legit one. True, some scam projects have whitepapers and websites that looks like a kid made them. But some of scam projects have really got websites and whitepapers so it's hard to tell they are a scam. And some projects probably start with an idea of a legit project but then can't deal with the competition and then owners make an exit scam.

[reliable]

all market is bleeding now, and last 7 day i see only bitcoin starting to rise. and ofcourse altcoin specially defi is the worse down in this market.
but if they star rising defi is the first to gain more than other coin. because hype defi still exist.

Defi was more than a hype and it rose very fast without having the sold base as per me. Was sure that fall is coming on its way when was only a concern and it happened no sooner. So all those who had bought like at high levels may not see the prices anytime probably now.

[ARTCOINSLV]

We have witnessed a massive popularity regarding DeFi projects, but it's seems that DeFi hype is over. For the past week DeFi tokens plunged massively.

Loses over the last week:
Chainlink: 12%
Aave: 19.5%
Uniswap: 32%
Yearn.Finance: 44%
Compound: 20%
Uma:33%

Read more: https://www.worldcoinindex.com/nl/news/defi-tokens-plunge-in-a-wide-sell-off-is-this-the-defi-bubble-burst

Are you kidding ?, it's only the beginning.
If you think so, need to throw out bitcoin into the trash
Falling it's a natural process.

[deathcode]

all market is bleeding now, and last 7 day i see only bitcoin starting to rise. and ofcourse altcoin specially defi is the worse down in this market.
but if they star rising defi is the first to gain more than other coin. because hype defi still exist.

Defi was more than a hype and it rose very fast without having the sold base as per me. Was sure that fall is coming on its way when was only a concern and it happened no sooner. So all those who had bought like at high levels may not see the prices anytime probably now.

Of course, a bad analysis is certainly done by many people when they see that there are assets that are rapidly rising in the market. traders and investors will definitely follow the market trends that occur at DeFi. but it can't last long. many new projects that also need to be anticipated. scammers definitely take advantage of moments like this.

[peterpanda]

We have witnessed a massive popularity regarding DeFi projects, but it's seems that DeFi hype is over. For the past week DeFi tokens plunged massively.

Loses over the last week:
Chainlink: 12%
Aave: 19.5%
Uniswap: 32%
Yearn.Finance: 44%
Compound: 20%
Uma:33%

Read more: https://www.worldcoinindex.com/nl/news/defi-tokens-plunge-in-a-wide-sell-off-is-this-the-defi-bubble-burst

Are you kidding ?, it's only the beginning.
If you think so, need to throw out bitcoin into the trash
Falling it's a natural process.

What do you think? This defi hype will run for a long time?  Though it is tough to speculate the exact future of crypto currency, I think this hype will over within short possible of time.

[southerngentuk]

Defi is the fashion of 2020 as ICO was the fashion of 2017 and in 2019 most of them went down more than 50% of their ATH, we need to see what would be the new fashion, then the DEFI bubble would burst and the money of DEFI market would go there, Till then we can make money from DEFI market and then leave it for good.

[beerlover]

It is not unforeseen at all it is actually quite right on the money as well, it is literally what happens right away. You think things like uniswap, chain, avax or whatever the hell new pop one is (is polkadot one?) all got so hyped because they are good? Look at IOTA and how it became so big that on the PEAK ATH periods of crypto in 2017 December when everything was so big that total market cap was 1 trillion dollars, that coin was in top 10 and was tens of billions of dollars. Look at it now, it is nothing.

As you might imagine, as soon as a new hype hits a big all time high level and reaches the peak point, it doesn't slowly go away, it can't go slowly away, there are billions of dollars involved so obviously people just get out as soon as they feel like they might lose, this is why it goes down very quickly when it's done.

[bitcon]

Nah, it's too early to say if the bubble has been burst. Perhaps it's just profit taking now and then there are whales that manipulates the price to push it lower again so that they can re-invest. That's how it is, and we are not entering a bull run, so remember that. Next year will be big, if the bull run started on the first quarter then expect this Defi hype continue it's ride up until the bubble soon after. So I'm not surprised by the sea of red today, it's just a matter of time before it will bounce back, rinse and repeat.

In 2020 DeFi became the most popular trend in the cryptocurrency market, although at the beginning of the year only a narrow circle of traders knew about this sector. Some people continue to take DeFi as a bubble (as it was with Bitcoin and Ethereum). The hype will go down, but as DeFi is NOT a bubble, it will not burst.

[kingzpro]

All the projects you have listed in the opening thread are good ones and even if they are currently facing a downtrend but i am confident that they will be able to recover and do good in the future both as projects and increase in token value.

[ARTCOINSLV]

Nah, it's too early to say if the bubble has been burst. Perhaps it's just profit taking now and then there are whales that manipulates the price to push it lower again so that they can re-invest. That's how it is, and we are not entering a bull run, so remember that. Next year will be big, if the bull run started on the first quarter then expect this Defi hype continue it's ride up until the bubble soon after. So I'm not surprised by the sea of red today, it's just a matter of time before it will bounce back, rinse and repeat.

In 2020 DeFi became the most popular trend in the cryptocurrency market, although at the beginning of the year only a narrow circle of traders knew about this sector. Some people continue to take DeFi as a bubble (as it was with Bitcoin and Ethereum). The hype will go down, but as DeFi is NOT a bubble, it will not burst.

I agree with you, DeFii is not a bubble !
Scammers shouldn't be the defining argument.
DeFi this is a new stage in the crypto industry.
And it does not seem simple for an ordinary person.
I still cannot understand all the intricacies of DeFi 

[Maxstl007]

The drops in DeFi projects value aren't that bad and since bitcoin finds its way back to 11500 dollars thinks are starting to look alright for projects like Aave, COMP and others, if you are the type that always expect crypto projects to keep surging you should think twice, crypto projects will always go down at one point in time, if you don't want to see your portfolio lose value better take profits and switch to USDT

[aemma]

Even with this crash in price of major Defi projects, new ones are still coming up with little to nothing to offer other than the usual hype and so on. I believe if we take a good look at the price of a good number of DeFi projects we will see that they have dumped massively, however, although bear market affects all coins but at the same time not all coins will rise when the market changes for a good; this will be the case of many Defi projects. So it still brings us to the Important aspect which is making our research properly before investing in any so called DeFi project. Although some Defi are good but a whole lot are not.

[FanEagle]

I disagree that these drops are a small thing, they are very big because none of them are like bitcoin itself, bitcoin could have a drop because it is the first ranked coin and it will come back, none of these can drop and make it back to where they used to be.

Look at all the other coins that peaked during the 2017 December, bitcoin was at 20k and it is now 11k, which is about 55% of what peak was, look at other altcoins and see which one has dropped more and which one dropped less, almost all altcoins dropped more than bitcoin, because bitcoin can recover better than all others. Now those are good known coins that couldn't recover as much as bitcoin, and you assume stuff that is barely few month old and totally unreliable will make it back up again over to their peak? That will never happen.

[VolkoB]

In no case. The situation is stabilizing. The wild growth was caused by the hype, now everything will return to normal. Defi will develop, this is a very promising direction.