Crypto Market Crash and SushiSwap Saga Behind the Initial Drop of 22%
This drop by 22% was attributed to two factors. Firstly, there was a major correction in the crypto markets that saw Bitcoin drop below $10k on several occasions. Ethereum also fell hard from around $490 to $300. This sharp price decline definitely affected the fiat value of digital assets locked in DeFi.
Secondly, Chef Nomi had caused a bit of panic by cashing out his SUSHI for $14 million in Ethereum (ETH). His initial exit might have caused DeFi investors to pull out their funds from the various DeFi platforms thus reducing the total value locked.
Total Value Locked in DeFi Recovers by 39.5%
With the crypto markets now stable and the SushiSwap saga now resolved, the total value locked in DeFi has recovered by 39.5% since its bottom. This feat was captured by the team at Unfolded via the following two tweets that demonstrate the initial crash and subsequent recovery.
A quick glance at recent news in the crypto-verse reveals that the DeFi industry continues to grow at warp speed. In the past few weeks, we have seen exchanges such as Binance, OKEx, KuCoin, Bitrue and more, start to offer DeFi products on their platforms in a bid to keep up with investor interest.
DeFi to Make Banks Obsolete
This rapid growth in DeFi has fueled several predictions including traditional banks becoming obsolete with time and future Nobel Prizes being awarded based on work related to crypto. Below are tweets providing the two predictions.
Indeed. Banks are obsolete. #DeFi is a trend now. Projects, like @EquilibriumDeFi can offer you much more higher APY than banks.