Investing in any cryptocurrency will always carry certain risks. Those risks are amplified further where DeFi assets are concerned. September hasn’t been a great month whatsoever, as most major tokens noted steep declines.
DeFi Assets Lose a lot of Value
When Bitcoin faces a rough patch, all other crypto assets will follow a similar path. DeFi assets are no exception in this regard. According to statistics provided by Kaiko, the month of September hasn’t been too great up until now. In fact, nearly all top assets lost a fair bit of value, with one notable exception.
That exception is, of course, none other than Uniswap’s UNI token. Although it only launched about two weeks ago, it has proven to be of great value and interest. Despite the initial excitement, the price has undergone a big dip already. Even so, it is, according to Kaiko, still up by 45.3% for the month. A bit of a skewed picture, but the sentiment somehow makes sense.
As far as the other DeFi assets are concerned, things are a bit different. The biggest drop-off has been recorded by Umami, or UMA. It has lost over 57% of its value. This may seem a bit odd, as it still provides decent yield farming opportunities. Even so, the overall excitement has cooled off a bit, at least for now.
The same can be said about COMP, Synthetix, Maker, ZRX, and Aave. All of these popular DeFi assets lost between 27.7% and 43.4% in the past few weeks. Given the feeble Bitcoin price trend right now, it is not entirely abnormal to see prices decline even further.
Yearn.Finance Escapes, for now
It is also worth noting there is one asset in the DeFi space bucking the trend somewhat. More specifically, YFI, the asset of Yearn.Finance, has “only” lost nearly 12% throughout September 2020.That is, in comparison to the different DeFi assets except for UNI, a rather positive trend. YFI Continues to retain an incredibly high value, despite the overall market conditions.
Given all of this sentiment, it will be interesting to see what the next quarter brings for DeFi assets. There is a lot of competition, with more new tokens to be launched between now and the new year. Yield farming remains attractive, as plenty of assets remain hidden gems. Whether they will eventually pop off, is an entirely different matter altogether.