DeFi indexes crash despite strong fundamentals

[Cordillerabit]

Binance Futures’ DeFi Composite Index has lost half of its value since launching, while TokenSets’ DeFi Pulse Index is down by one-third.

On August 28, Binance Futures launched its DeFi Composite Index, a basket of DeFi tokens that initially comprised 27% Chainlink (LINK) and 11% Aave (LEND) alongside nine other prominent DeFi tokens that made up between 6% and 9.5% of the index each. Updated weekly, the index now tracks 19 different crypto assets.

However the Binance Futures’ DeFi index has dropped more than 50% from an all-time high of $1,189 on its first day of trading, with the basket now changing hands for just $507.

Indexes tracking decentralized finance (DeFi) tokens have taken a beating over recent weeks following the popping of August’s DeFi bubble.

On September 15, TokenSets launched its ‘DeFi Pulse Index Set’ (DPI) — which is composed of tokens from the ten-largest decentralized finance protocols by total value locked (TVL), according to DeFi Pulse. The basket is rebalanced on the first day of every month, with each token’s sizing adjusted according to “its relative circulating market cap to other positions in the index.”

Despite the TVL of the DeFi sector continuing to push higher, the DPI has shed nearly one-third of its value since launching — dropping from $130 in mid-September to test support at $90.

Source: https://cointelegraph.com/news/defi-indexes-crash-despite-strong-fundamentals

[bigcash2011]

There is nothing much to worry about as the price crash was highly expected by the market especially due to the fact that most of the defi tokens pumped too much in short span of time which made it looked bloated and overvalue so a deep correction was due.

[Bobcrypto]

I don't think that with the recent crash of Defi projects, there could be any serious corrections looking at hype it has generated on a very short period of time. I think the situation on the Defi market is just simiar to bitcoin pump in 2017, and till this hour, there has not been any significant corrections to it's initail all time high of ($20k) mark. This is a similar situation the Defi projects are going through.

[cryptopediabd]

Messari’s screener tracking the performance of Ethereum (ETH)-based assets also suggests the DeFi sector is currently down, posting weekly and monthly losses of roughly 2%.