DeFi Bubble Burst?

[G.Belaci]

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

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[Mpamaegbu]

Well, I think the crash at the moment is a general market thing and not only confined to DeFi projects. However, I have observed that Yearn.Finance has had the worse hit among the DeFis. At a point in Sept it got to over $40,000. Now it's trading below $20,000. But this crash hasn't discouraged investors from rushing to DeFis. More DeFi projects are now coming to the market on daily basis and are getting attention. Honestly, while I still maintain that DeFi is just a trend like we had with ICOs and IEOs, I believe the trend isn't ending now. At least, we will continue to see this trend till the end of 2020.

[Princejebs]

According to Sentiment Assets screener, DeFi has bled by 21.1% in the last 24hrs and decreased in volume by 30.2%
Now, this beg the question, does this hype worth it?
I can't really conclude that this is gabbage to everyone, others benefit from the hype as well and some booked their profits before the downtrend.

DeFi is revolutionizing the traditional system of financial freedom, it should be taken as a test and high risk in different form of scenarios either in lending, borrowing, DEX and pools and staking. Yearn finance and compound who began the trend has became a laughing stock.

[btc_angela]

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.

[cryptomaniac_xxx]

Not yet, according to the bubble phase, we might be just on the first sell off and then bear trap. So it's still a long way to go before the DeFi Bubble will be burst. There will be second wave perhaps in November-December again and will took on next year, so stay tune for more.  


Source

[slackovic]

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

I don't know about other projects, but I see that just today UNI gained +28% and ChainLink gained +13%. This is crypto. Here 10-20% price swings are normal. I definitely wouldn't worry about it. However, I would worry about projects like CBDAO (BREE) whose smart contract enabled one of the programmers to mint sBREE tokens, swap them for BREE and then dump them on the market. Projects and teams like that are the real problem of DeFi, not it's hype.

[asriloni]

The defi trend is almost end and it seems like that everything is going back to the normal again. It's not only those defi but almost all of the defi projects have already faced very very big downtrend since there are so many defi projects appear in the market. Investors are feeling bad with it and they have already started to stay away from these defi projects.
Defi is just a bubble that already burst.
The next will be NFT.

[slackovic]

The defi trend is almost end and it seems like that everything is going back to the normal again. It's not only those defi but almost all of the defi projects have already faced very very big downtrend since there are so many defi projects appear in the market. Investors are feeling bad with it and they have already started to stay away from these defi projects.
Defi is just a bubble that already burst.
The next will be NFT.

Maybe, but DeFi is here to stay. The same was with ICO craze in the 2018. It was a bubble that burst but still some great projects are raising money trough ICOs. The same will be with great DeFi projects. They will continue with the development.

[mu_enrico]

But the price has been in a rebound, and now they are in the 24h green. It will surely burst, but no one knows the exact time and how.
If you want to play with fire, you are free to do so, just be careful

I'm bad at predicting price, but I'll give one anyway: the price will stay in the downtrend for a long time (the price will gradually decrease bit by bit). A bull run might not happen till the next Bitcoin halving as it needs momentum and new users.

[20kevin20]

The DeFi bubble has bursted a while ago imo, and all we'll see is occasional pumps&dumps and, generally, a downtrend. The focus has to move to yet another useless hype now that the so-called "revolutionary technology" of DeFi is failing.

Not yet, according to the bubble phase, we might be just on the first sell off and then bear trap. So it's still a long way to go before the DeFi Bubble will be burst. There will be second wave perhaps in November-December again and will took on next year, so stay tune for more.  

Hard to believe that all bubbles are exactly the same. A little positive information could easily turn a bubble into a bull run in a market where the conditions are able to change significantly every few seconds.

[casperBGD]

The DeFi bubble has bursted a while ago imo, and all we'll see is occasional pumps&dumps and, generally, a downtrend. The focus has to move to yet another useless hype now that the so-called "revolutionary technology" of DeFi is failing.

Not yet, according to the bubble phase, we might be just on the first sell off and then bear trap. So it's still a long way to go before the DeFi Bubble will be burst. There will be second wave perhaps in November-December again and will took on next year, so stay tune for more.  

Hard to believe that all bubbles are exactly the same. A little positive information could easily turn a bubble into a bull run in a market where the conditions are able to change significantly every few seconds.

would not agree with your opinion, it was not a bubble, it was a hype price rise, but when a bubble is finished all prices are going on the price before the bubble, and that will not happen here, prices will stay on a level that is 5-10x from what on the beginning in March/April, it was just a hype that due to which price rose more than it is realistic at the moment, but not a bubble, since this technology (DeFi) is here to stay, not just for crypto industry, it will be useful for financial industry as well
of course, one should do their own research before investment, but there are good projects, with solid fundamentals, that will stay long time

and there are scams, as well, but industry will survive scams after hype

[Fundamentals Of]

In my honest opinion, the DeFi bubble has not yet burst. I agree that it is a bubble though. DeFi is directly competing with the services being provided by the old and powerful banks. This first batch of DeFi products might not make it to the finish line. They are taking away the money that these banks could have made.

But I guess the bubble has just contracted a bit. It has gone much thinner. It has not yet really burst though. It is now being challenged and that it is now clearly showing that it's existence is highly dependent on hype. Anytime, the bubble could fully pop.

[Gayong88]

My opinion is not over yet, where people's interest is still high and investors are still making trade transactions. Exchange providers are also competing to provide a place for Defi-based exchanges.

[benthach]

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

there will always be a better scam tomorrow 

[Kunnu]

For now I wouldn't say that defi hype has finished but it may be over soon If the market continues its slow progress as we can see from the last few days mostly defi projects are getting in dip it's because of slow market momentum, according to my estimate whenever the market will be in good conditions then we may see decent performance of some defi projects.

[crwth]

Everything may go down at some point, and for Defi, I think it's the time now. In what cryptomaniac_xxx posted, it helps to see what point we are in the current situation based on the price. It shows the behavior of investors in that current market. I have seen a couple of it as well, and it is entirely factual, in my opinion.

Probably a lot of people have already made money with it, and some are just selling everything and would probably try to move to the next hype.

[Yaunfitda]

The defi trend is almost end and it seems like that everything is going back to the normal again. It's not only those defi but almost all of the defi projects have already faced very very big downtrend since there are so many defi projects appear in the market. Investors are feeling bad with it and they have already started to stay away from these defi projects.
Defi is just a bubble that already burst.
The next will be NFT.

It's going to cyclical, boom and then burst, and then we have some lull in between and then start all over again. We compare them to ICO, it took years before we have seen it's dead. So similar to DeFi, until there's no hype that will replace DeFi, it will continue to enjoy the support of investors. Yes, there are a lot of scams, but people still blindly invest on them right? that's why scam are rampant. The only way for it to die is that investors totally stop, but I doubt that scenario will happen, not unless a new "it" thing came along and replace DeFi.

[Deficraze]

DeFi is here to stay awhile, Now NFT is arriving. All the projects which are down mostly random projects like all others. The promising projects will make an impact. Have you come across with Psyche coin?

[shinratensei_]

My opinion is not over yet, where people's interest is still high and investors are still making trade transactions. Exchange providers are also competing to provide a place for Defi-based exchanges.

I quite agree with it but we must also see the fundamental of the defi right now. Someone has already created a thread that has already discussed how much value that has already gone from the defi platforms.
People are also seeing the defi projects very similar like the ico projects. There will always be the time when people will be feeling bored with it.
Investors are making the transaction in the defi platforms but they never think to use the defi coins as their long term investment.
In fact, if people will always jump from one to the another project.

[poodle63]

expecting it or not but this burst at some point gonna come for sure. many people are hyped up by the project not because the project itself is promising but because everyone expecting to make some quick buck but just like in the past things that got hyped up like this will eventually reach the point where the hype has faded and the market become normal. it's a good thing though in my opinion.