In the last 24 hours, DeFi coins like Lido Finance (LDO), Synthetix (SNX), and Curve (CRV) have lost at least 9% of their value.
The price of LDO, the native token of the popular staking platform Lido Finance, has gone down 10.2% in the last 24 hours and is now around $1.38.
According to data from CoinMarketCap, LDO is the 78th largest cryptocurrency by market capitalization. Since its all-time high of $18.62 in November 2021, it has dropped 92.56 percent.
SNX, which runs the platform for making synthetics called Synthetix, has also lost 9.89% in the last 24 hours. The market capitalization of the cryptocurrency DeFi is about $342 million, but it has lost 89.62% of its value since its all-time high of $28.77.
The governance token for Curve Finance, CRV, has also gone into bear territory in the last 24 hours.
Even though the token went up a lot when it was announced that it would be used as a stablecoin, today’s bad news has brought it back down to earth.
Other DeFi coins have lost value in the last 24 hours, such as Chainlink (-6.7%), Bancor (-5.3%), and Aave (-3.6%). (5 percent).
The Fed, Crypto, and DeFi
The meeting of the US Federal Reserve later today is a big reason why the value of DeFi tokens is going down. Every market, not just the cryptocurrency market, is preparing for another big rate hike.
The US Federal Reserve is planning to raise interest rates by another 75 basis points because global and US inflation are getting close to their highest levels.
When interest rates go up, bond yields go up, but investors are less likely to invest in riskier assets like stocks and cryptocurrencies like Bitcoin and Ethereum.
In the last 24 hours, Bitcoin has dropped about 4%, but Ethereum has dropped much more. Also, it’s important to know that most DeFi activity is based on Ethereum.
Ethereum (ETH), the second-largest cryptocurrency with a market value of $171 billion, has lost more than 7.39 percent in the last 24 hours and is now worth about $1,413.
CoinMarketCap says that ETH is now 71.16 percent lower than its all-time high of $4,891 in November of last year.
In the middle of all this bad news, CryptoSlam says that sales of Ethereum-based NFTs have gone up by 30% in the last 24 hours.
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