Last week, most of the bears’ effects were felt in the decentralized finance (DeFi) ecosystem. These effects were caused by rumors that Three Arrow Capital (3AC) and Celsius would liquidate. MakerDAO took Aave (AAVE) out of its direct deposit module to protect against the possibility that Celsius would fail, which would cause the price of staked Ether to drop (stETH).
As news of 3AC’s failure keeps spreading, 8 Blocks Capital asked platforms that hold 3AC-owned funds to freeze them. Saylor believes that Bitcoin (BTC) and the Lightning Network can solve a number of problems in the DeFi ecosystem.
Bears slammed the top 100 DeFi tokens, and most of them hit lows not seen in more than a month and double-digit weekly losses.
The crypto meltdown has thrown DeFi protocols and CEXs into disarray.
Monday’s big drop in the price of cryptocurrencies sent big waves through projects and businesses. Almost all stablecoin borrowings have seen a drop in how often the DeFi termination protocol Aave is used. In particular, Binance USD (BUSD) borrowings have dropped from an all-time high of 80% in May to a new low of 30%.
Usage rate is the amount of money borrowed compared to the amount of money put in. Because Aave requires borrowers to put up digital assets as collateral before they can get a loan, people are probably pulling out in large numbers to stop the platform from falling. The total locked value of Aave has gone down from $33.51 billion in October 2017 to $8.11 billion now, according to DefiLlama.
The best example of this desire to give a place for youth and enthusiasm is probably the creation of Unconference, a spontaneous, unscheduled stage where all attendees can speak for 10 minutes about their ideas and dreams for the space.
Ether (ETH) is one of the most important assets on the market for non-fungible tokens (NFTs), but its price is now dangerously close to $1,200 after dropping by 35% in the past week.
This drop has had a domino effect on the price floors and buying habits of well-known NFT collections, especially profile-picture-projects, sending the sector into its first bear market.
Rich was eager to point out that the main point of NFTs is art, and he is still excited about the connections and friendships that will be made at the event, especially when people meet by chance in line or when two speakers share the same platform.
Button agrees with the assessment that several utility use cases will be shown in different industries. He says the music industry is one to keep an eye on:
I think that one of the most interesting ways that NFTs will be used is to change the way the music business works, whether through royalty rights, merchandising, or the creation of new ways for artists and fans to make money together.
This year, there has been a big rise in the visibility of NFTs that are used for good, especially when it comes to helping Ukraine’s relief efforts and promoting cultural diversity.
At NFT.NYC, which will take place from June 21 to 22 at the Edison Ballroom South, there will be 28-panel discussions and speeches on topics like sustainability, mental health and well-being, and charity.
The post DeFi sells down heavily after Three Arrow Capital and Celsius collapse appeared first on NFT News Pro.