Despite Strong Fundamentals, Defi Index Manages To Crash

Refreshed weekly, the index now follows 19 different crypto assets.

Although, the Binance Futures’ DeFi index has declined higher than 50% from an all-time high of $1,189 on its very first day of trading, with the basket now swapping hands for only $507.

Indexes hunting decentralized finance (DeFi) tokens have suffered a defeat over recent weeks following August’s DeFi balloon popping.

On September 15, TokenSets started its ‘DeFi Pulse Index Set’ (DPI), made of tokens from the ten-largest decentralized finance protocols by total value locked (TVL) to DeFi Pulse

The basket is rebalanced on the first day of each month, with every token’s sizing customized according to its associated current market cap to other positions in the index.

Notwithstanding the TVL of the DeFi sector remaining to push higher, the DPI has dropped nearly one-third of its value since the beginning — falling from $130 in mid-September to test support at $90.

Other crypto market data aggregators signify that DeFi is under, with only 16 of the 100 tokens described as ‘DeFi’ on CoinMarketCap posting gains of more than 1% over the past seven days.

Messari’s screener tracing the performance of Ethereum (ETH)-based assets also implies the DeFi sector is currently below, posting weekly and monthly declines of approximately 2%.

Notwithstanding the large price retracements given by most maximum DeFi tokens, the sector’s fundamentals endure growing. DeFi’s TVL has advanced by about 40% of $7.4 billion over the past one month period of time, while decentralized exchange (DEX) Uniswap completed more than $15 billion in volume the previous month — higher than the top U.S.-based centralized crypto asset exchange, Coinbase.