DeFi Volume Dropped, Is the Bubble Fading?

2020-10-15 09:50:00 · 4398 views · 4 min read


The entire DeFi sector seems to slow down after the crazy summer boom. Overall, DeFi token prices have also experienced a bear market in the past 30 days.



You can find a clue on our new DeFi Ranking page: The top 6 DeFi protocols’ volumes either dropped in the last 30 days or only slightly increased. Curve even experienced a sharp volume drop of 77.82%. So did the TVL (total value locked). In all these 6 DeFi protocols, half of their TVL has decreased, and the rest only raised by less than 3%.


Let’s have a closer look at each of the top 6 projects’ performance for more stories.



Uniswap V2


Uniswap V2 seems to outperform all the rest DeFi projects in the market during the boom. 



However, Uniswap volume and the $UNI token price showed the same trend: The dotted line is the price curve and the blue line represents the volume. Both lines started to drop since the daily volume peaked at $598.55M and the Uni price peaked at $6.36 on 18th Sept. $UNI token price performed the same trend as its volume date.






Yearn.Finance is another star project this summer. Its token YFI even hit its ATH at $43,678.11 on 12th Sept, just about a month ago. 



Now its price drops to around $14K, but still above the price of BTC. The price of YFI has fluctuated and declined for over a month.





Compound’s COMP token has been one of the hottest yield farming tokens ever since it was launched.



The charts above shows that COMP price experienced a fluctuating drop by over $50 since 18th Sept. Now the price is just beyond $100. But Compound is the only DeFi protocol among these 6 DeFi products that has a transaction volume increase in Oct, increased by 7.97%.






Curve volume and CRV price show a highly correlated relation.



We can see that the price curve and volume curve almost move in the same direction. And the overall trend is gradually going down: Curve’s 30d volume has dropped by 77.82%, meanwhile CRV price has dropped below $1. 



What else projects have this volume vs token price correlation? Check this article: Price Indicator for Your DeFi Token Trading.



Aave Protocol



Aave Protocol’s 30d volume dropped over 30%. You can see in the graph that after the peak on 28th Sep, its October’s daily transaction volume is just around half of that in Sep. Its token price drop 25.8% in the past 30d. 






Balancer volume and BAL price is also showing a highly correlated relation.



Balancer volume first decreased sharply after the daily volume peaked at $608.5M on 18th Sept. Then the daily volume continues to be less than $100M until now. The same goes for BAL price. It declined sharply from $21.99 on 18th Sept, and kept at about a $15 level.



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