In late August this year, Binance launched the DeFi Composite Index. Trades with the symbol DEFIUSDT, currently down more than 50% within a month.
Unfortunately, there is even worse news for the young index.
DeFi Composite Index Drops More Than 50%
At this point, it’s pretty clear that DeFi is the most popular place to be in 2022. The field has seen exponential growth over the past few months, as the total value locked into the protocol has risen from around $500 million in March to nearly $11 billion. at the time of this writing.
With it, we saw the creation of various tokens that were mostly DeFi-oriented, most of which turned out to be blatant scams.
However, towards the end of August, Binance launched the DeFi Composite Index. It “tracks and measures the performance of a basket of assets in a standardized manner.” Traded on the symbol DEFIUSDT, currently down more than 50% since its announcement.
The Bad News
The bad news from all of this is that there are some relatively large caps as well as some very popular cryptocurrencies that caught the attention of the community but were not included in the basket. Its value is depreciating.
One of them is SUSHI – a popular decentralized exchange protocol which is an offshoot of Uniswap with additional governance tokens. After peaking at around $5 in early September, the token is now trading at around $0.90, recording an 82% decline.
Another token not on the list is YF Link (YFL). At one point in September, the YFL was trading around $1,000, while its value is currently hovering above $350 – a 65% drop.
In other words, the DEFIUSDT index is down more than 50%, and it doesn’t even include some of the popular coins that recorded heavy losses.