The cryptocurrency market continued to bleed as most DeFi-related tokens suffered major hits. Tokens of liquidity protocols and DEXs like UNI and SUSHI posted heavy losses in 24 hours.
UNI, the token of Uniswap, shed over 8.5% in the last 24 hours to reconcile at about $5. The 22nd-biggest crypto by market cap has lost more than 88% of its value from its ATH of $44 attained last May.
Based on Dune Analytics data, the weekly trading at the exchange dropped by $6.1Bln to $3.9Bln in under a week. The rate of this plummet last occurred in December, two years ago.
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Meanwhile, SUSHI of Sushiswap exchange has lost about 8% of its price. The DeFi coin trades at $1.5 as of this writing. The current decline means the token has shed more than 90% of its value from its ATH of $23 attained in March last year.
Monthly traders on the exchange also declined by 10k to 60k in May. Trading volume reduced to $6Mln from its ATH of $1.34 Bln in November.
LINK and 1INCH Record Loses
LINK, the token of Prominent Oracle protocol Chainlink, and 1INCH were also down over the past day. LINK declined by 8% in the market and currently trades at $6.5. Its recent decline means the token has lost approximately 87% of its value since it attained an ATH of $52 last May.
Chainlink uses oracles to provide on-chain data to off-chain platforms. They act as a data bridge to keep apps and protocols updated with the latest information about events on the go.
Elsewhere, 1INCH, the token of 1Inch exchange, was down over 6% and currently exchanging hands at $0.9. The decline also caused the 98th-biggest crypto by market cap to slide to $377mln in value.
Experts Point to ETH as Cause of the Fall
Ever since various DeFi tokens crashed, traders have been wondering about the driving factor behind the bloodshed. According to analysts, the cause of the drop in TVL is the price slump of ETH.
ETH slumped by 6% in one day and almost 5% in one week. Currently, the crypto is trading at around $1.8k. The OG altcoin and second-biggest crypto powers a significant portion of the DeFi landscape. So, a fall in its price will signify a major shed in the value of other tokens.
Based on data from DeFiLlama, TVL across all decentralized finance platforms was over $249Bln on May 1st this year. Currently, the value has declined by over $100Bln.
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DeFi tokens aren’t the only ones suffering. BTC also fell 2.3% in the last day and currently trades a little below the $30k level.