DeFi Holding up Unusually Well in Down Market: Bitwise
The post DeFi Holding up Unusually Well in Down Market: Bitwise appeared on BitcoinEthereumNews.com. Decentralized finance (DeFi) tokens have held up unusually well against Bitcoin over the past month, suggesting the market may be “quietly re-rating” the sector, says crypto index fund maker Bitwise. Bitcoin (BTC) fell about 22% in June, while Bitwise’s index tracking tokens from major DeFi protocols fell only 4% over the same period, Bitwise said in a report Thursday. “DeFi usually swings much harder than Bitcoin, so holding up this well is unusual, and almost no one is talking about it,” it said. DeFi tokens have a reputation for being highly volatile during crypto market swings, as they’re the first to be sold by risk-averse traders. However, Bitwise said this is changing as traditional institutions have begun to use the protocols, which have stabilized the wider DeFi ecosystem. “We think DeFi is quietly re-rating,” Bitwise said. “Token economics are improving, the gap between usage