DeFi Coin And May’s Bloodbath, The Bitcoin Rally (BTC) generated thousands of crypto millionaires in the first months of 2021, until a violent sale on May 19. BTC lost more than 20% of its value in the first hours of trading. morning and the whole market followed. . We’ve been in a deep correction ever since, but DeFi Coin is going back.
The market capitalization of the top 100 digital assets considered part of the future decentralized finance (DeFi) ecosystem has collapsed from a maximum of $ 175 billion to $ 40 billion, according to data compiled by CoinGecko.
A sharp DeFi Coin decline in the value of major cryptocurrencies.
The sharp decline in the value of major cryptocurrencies, and the demise of several stablecoins. Including the primary Terra UST token, along with numerous cyber security incidents. That led to millions of dollars being drawn from investors, which were some of the factors that contributed to the decline. . Meanwhile, data compiled by Defi Llama shows that total value added (TVL).
The DeFi Coin protocols fell from a high of $ 240 billion last December to today’s $ 74.5 billion. After nearly $ 2 billion, the market capitalization of the native Celsius token has dropped to $ 153 million today, with annual token losses now reaching 85.4%.
The collapse of DeFi Coin Terra remains the most famous incident.
However, the collapse of Terra remains the most famous incident this year to date, affecting. The DeFi ecosystem, as more than $ 60 billion was lost from the project’s market. Capitalization after stablecoins older UST suffered a combined attack that eventually pushed it out of its wreath.
An algorithmic stablecoin that would maintain fixation due to some complex coin and fire mechanism. That is the native token of the LUNA network failed. Its goal and move the Luna Foundation Guard (LFG) to billion-dollar bitcoins (BTC) to sell) in an – unsuccessful – attempt to prevent liquidation.
What we cover here.
- Decentralized exchanges
- Lending activities
- Profitable agriculture
- Launching platforms (part II)
- BSC activities in May (part II)
- DEX activities
DEX’s innovation lies in its business model. Central exchanges act as intermediaries between buyers and sellers, thus saving your assets. By contrast, all trading activities on the decentralized exchange (DEX) are managed. By, smart contracts that run on blockchains such as Ethereum or Binance Smart Chain (BSC). The way DEX works makes them immune to the problems faced by their centralized counterparts.
The high volatility of the last two weeks has led to new DEX volume records. This is a real DeFi Summer 2.0 with a volume of $ 300 billion for the first time. This figure represents a monthly increase in DEX of 96%. Even during the May 19 sale, the new maximum was set at $ 11.7 billion. PancakeSwap transactions accounted for more than half of the volume in May. While Uniswap maintained its dominant position in second place.
DeFi Coin Breeding for Liquidity Providers.
Profitable agriculture is, in fact, an integral part of decentralized stock exchanges. Users can generate nice rewards from transaction costs if they provide liquidity for DEXs. The most common metric in agricultural yield is the annual percentage yield (APY). The large APY of DeFi protocols (sometimes as many as 1,000,000%) caught the attention of the cryptocurrency world.
Unstacking does not seem to be a wise choice when prices are falling. So, this activity is not particularly affected in these times of uncertainty compared to trading. Two of the best-known providers of DEX and harvesting agricultural services are Unerewap. Based on Ethereum, and PancakeSwap at BSC. We can assume that the activities of the two DApps increased each time.
The Enthusiasm of Agricultural Users.
Gives us a look at the enthusiasm of agricultural users. The trend in May is not as strong as in April when the dynamics are high. However, a one-year chart could mean a transition from Etherea to Binance Smart Chain with a low level of Uniswap. Activity despite an 8-month uptrend. Meanwhile, the PancakeSwap fund currently occupies the first 19 positions on the list of the best funds with the highest APY.
However, market price fluctuations can have a strong impact on position matching. A record high of $ 614.19 million in decentralized financial positions. We were settled on May 19, combining a cryptocurrency-free fall that occurred on the same day. Not surprisingly, May 2021 now has one record for the highest number of liquidations per month and the other for the most one-day liquidations in DeFi.
A Fall in Celsius can have harmful effects.
The chief financial officer of Fitch Ratings recently commented on the situation in the DeFi ecosystem during an interview with CNBC. Professionals claim that the complete liquidation of Celsius could further shake the value of crypto-active assets, leading to a wider cycle of conflicts in the cryptosphere.
Meanwhile, Mikkel Morch, head of the ARK36 crypto-hedge fund, says.
Bear markets have a way to uncover previously hidden vulnerabilities and crowded projects so we can see events such as the release of the Terra ecosystem last month. Celsius allegedly adds additional guarantees to its position to prevent liquidation activities. Reports show that the liquidation price at which the company’s entire BTC portfolio can be sold is automatic $ 16,852.
Cryptocurrency enthusiasts who closely monitor the Celsius situation point out that if the protocol fails. It could have a dramatic impact on the value of bitcoin and cryptocurrencies in general. As thousands of tokens suddenly flood the market. the value of digital assets until a flash drop. This morning, the price of BTC rose 2.5% to $ 20,888 as the bulls appear to be struggling with everything.
DeFi Coin Needs a Decentralized Loan without a Guarantee to Fulfill its Promise.
Depending on the collateralization, the democratic potential of DeFi will disappear. Uncertain DeFi microloans increase this. Here it works individual members lend water to borrowers without raising capital. Instead of banks killing interest rates, liquidity provider users. Who offer their assets to finance a liquidity fund benefit from the level of credit.
Borrowers can easily get the funds they need without having to commit the rest of their capital. As the world recovers from pandemic economic failures. Blockchain-based solutions, such as DeFi Coin loans, offer innovative, sustainable pathways to more efficient and equivalent ones.
Reviewing and Reducing Collateral Requirements.
Reviewing and reducing collateral requirements, the system addresses creditors and prevents unproductive capital decisions. Unsecured loans give free lenders access to funds that can invest in the system, activate the market, and support its growth. Innovations are progressing Capital flows. This kindergarten received the credit she needed to access funding and build her business.
For this type of economy to flourish, DeFi’s credit structures must mature. Universal access to assets and the elimination of over-collateral opens the door to a just future for all. Uncertain DeFi microloans are key.