After months of the boom in decentralised finance, the latest figures seem to indicate that the rise of the DeFi is finally over.
Over the past few months, decentralised finance (DeFi) has been the true protagonist of the crypto market. Thanks to the surprising increase in the value of projects in this sector, with the consequent increase in the interest it generates among crypto users. However, after several months of boom, the figures compiled by Ceteris Paribus in today’s Tweet seem to indicate that the rise of DeFi is over:
DeFi on the rise
For a long time decentralised finance was considered by some as the future of the crypto market. According to the advocates of the DeFi, they would release all the financial energy that is held back by the limitations of traditional finance. Generating a new impulse in economic growth at a global level, based on crypto currencies.
However, it was not until the middle of this year that the rise of the DeFi attracted the attention of crypto users. It led to millions of dollars in investments entering a market that, until then, had been considered a marginal part of the crypto world. This, of course, led to an increase in demand for DeFi tokens.
As a result, in just a few weeks, major DeFi projects increased their prices exponentially. Providing astronomical profits to its first users, and attracting new investors. In a cycle that gave birth to one of the most important rises in the history of the crypto world, which, however, seems to have come to an end.
„Summer rise of DeFi and ETH peaks and troughs. Most of the highs were reached between August 15th and September 1st“.
As can be seen in the graph accompanying Ceteris Paribus‘ tweet, most DeFi tokens peaked between 15 August and 1 September. They suffered real price collapses of up to 92% of their value, in a market realignment that could indicate the end of the DeFi rise.