Last week was a tough one for the world of digital money, which is called decentralized finance (DeFi). Many digital coins lost 10% to 20% of their value. The biggest drop was seen in a coin called Pendle.
Pendle’s coin saw a significant drop of more than 20% in two days of trading. A lot of people are betting that Pendle will keep going down. Pendle also saw a significant drop in the total value of all its coins, losing $3 billion. Experts think this happened because people chose to take out their money instead of keeping it in Pendle.
- The DeFi sector has seen a significant drop this week, with Pendle experiencing the biggest decline.
- Other DeFi tokens, such as Aave (AAVE) and Lido (LDO), have also suffered big losses during a quiet period in the crypto market.
- A “whale,” or a large crypto investor, has moved large amounts of LDO and AAVE to Binance, possibly to sell them.
DeFi Tokens Tumble, Pendle Leads the Dive Amid Quiet Crypto Market
Rob Hadick, who works at a company that invests in businesses, said: “The returns from Pendle aren’t beautiful right now, which is why people are taking their money out.”
Earlier this year, Pendle’s value had risen significantly because of airdrops and farming points. However, these activities have slowed down, and the returns aren’t as attractive anymore. So, many people took their money out at the end of June, which caused Pendle’s value to drop.
But Joshua Lim, who started Arbelos Markets, is hopeful. He said: “Even though Pendle’s value might keep changing in the short term, we expect it to increase because of new partnerships like Symbiotic-Ethena-Mellow. We think these partnerships will attract new money.”
Other digital coins, such as Aave (AAVE) and Lido (LDO), also lost 10% to 15% of their value during the same time. A prominent investor, known as a “whale,” moved a lot of LDO and AAVE coins to a digital money exchange called Binance, probably to sell them.
This drop in the value of DeFi coins is happening when the bigger digital money market is quiet. Bitcoin (BTC) and Ether (ETH), significant parts of the DeFi world, have traded at values lower than their highs in March. ETH, the second most important digital coin, lost about 6% of its high on Monday.
Even though things look tough now, experts are hopeful. They believe new DeFi team-ups, like Symbiotic-Ethena-Mellow, will bring more money and help things improve. Our newsletters can keep you updated on these critical changes, so we encourage our readers to sign up.
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