As Ethereum falls, the most popular DeFi tokens on Maker and Uniswap also go down. Ground-leading decentralized finance (DeFi) tokens like Uniswap (UNI), Maker (MKR), and Compound (COMP) have lost a lot of value in the last 24 hours because the market as a whole has gone down.
Token UNI, which is used by the top decentralized exchange (DEX) Uniswap, is down 4.4% in the last 24 hours. At the moment, one share of UNI is worth about $6.60, and the daily trading volume has gone up by 28.17 percent to $272.93 million.
Even though UNI lost a lot today, its weekly gain is 8.6%. Coingecko data shows that UNI is the 18th largest cryptocurrency by market capitalization.
Coingecko data indicates that the DAO token MKR, which is behind the popular decentralized stablecoin DAI, has lost more than 6% of its value in the last 24 hours. This makes it the sixth biggest loser out of the top 100 cryptocurrencies by market capitalization.
MKR is the 63rd largest cryptocurrency by market capitalization. It is currently trading around $891, and daily trading volumes are down 10%.
The governance token of the strong decentralized lending protocol Compound, COMP, has lost 2.8% in the last 24 hours and is currently trading just above $50.40.
Chainlink (-3%), Aave (-2.8%), and Lido DAO (-2.9%) are some other DeFi tokens that have lost a lot of value in the same time period.
According to data from Coinglass, UNI has sold the most tokens for $186,520 in the last 24 hours. MKR is in second place with $34,390, and COMP is in third with $13,260.
Most of the positions that were sold were long ones that had been lost.
Surprisingly, all long positions in COMP have been closed in the last 24 hours.
According to data from DeFiLlama, the Total Value Locked (TVL), which is a measure of how much money is held across all DeFi protocols on Ethereum, has gone down by 2.27% to $31.25 billion.
DeFi is based on blockchain
It’s likely that Ethereum’s (ETH) poor performance caused these DeFi tokens to drop in value. All of these projects are based on Ethereum. According to data from Coingecko, the value of ETH has dropped by more than 2.6% in the last 24 hours, and it briefly fell below the important $1,500 support level early Friday morning.
In the last 24 hours, the amount of ETH that was traded dropped by more than 15%, to $17.891 billion. Bitcoin has also dropped by 2% in the last 24 hours.
The announcement of upcoming interest rate hikes seems to have put an end to the recent bull run in cryptocurrency markets. The news that interest rates will be going up seems to have stopped the recent run-up in cryptocurrency markets.
Reuters says that the Federal Reserve of the United States is likely to raise interest rates by another 75 basis points next week.
Rising interest rates make bond yields more attractive, which makes investors less likely to put their money into high-risk assets like stocks and cryptocurrencies like Ethereum and Bitcoin.
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