The ongoing crypto market sell-off has led to massive double-digit losses on numerous DeFi tokens including ChainLink (LINK), Yearn Finance, (YFI), Synthetix (SNX), SushiSwap (SUSHI), and Just (JUST).
Yearn.finance (YFI) is trading at $21,844 at press time and the currency value of YFI has gone far lower than its recent all-time high of $39,300. ChainLink (LINK) similarly dropped by a double-digit figure to $10.19 while Polkadot token went down to $3.83.
SUSHI, the token that powers SushiSwap, a kind of yield-farming version of decentralized exchange Uniswap, began to plummet in the past 24 hours. This reason might have led the Sushiswap Founder Chef Nomi to convert a portion of SUSHI tokens to ETH. However, he clarified through a series of tweets that he did not exit-scammed.
— Spencer Noon (@spencernoon) September 5, 2020
The massive losses of DeFi tokens may have been connected to ETH’s crash to $352 at the time of writing. Many DeFi protocols are based on the Ethereum blockchain, so the price drop has significantly affected the DeFi market.
People asked if I exited scam. I did not. I am still here. I will continue to participate in the discussion. I will help with the technical part. I will help ensure we have a successful migration.@SatoshiLite did that and Litecoin had no problem surviving.
— Chef Nomi #SushiSwap (@NomiChef) September 5, 2020
Although the entire crypto market was affected by the price drop, it was the DeFi tokens that got hit hard the most. Despite the recent losses, DeFi Tokens have outperformed BTC in 2020. As per DeFiPulse, the value of tokens locked in DeFi applications as of September 6 is $7.62 billion.
Such is the DeFi craze that various reputable exchanges including Binance and OKEx. Among the latter’s listed tokens are Tellor (TRB), Just (JST), Reserve Rights (RSR), YF11.finance (YF11), and Yearn.finance (YFI).
Meanwhile, Binance has listed the following DeFi tokens aside from YFI: Wrapped BTC (WBTC), Balancer (BAL), Curve Finance (CRV), Sushi (SUSHI), DFI.Money (YFII), Tellor (TRB), Dia (DIA), and Rune (RUNE).