Binance’s DeFi index plummets 60% as Bitcoin overshadows altcoins


The Bitcoin (BTC) resurgence continues to capitalize on the altcoin markets as other cryptocurrencies struggle to catch up with BTC.

DeFi struggles as Bitcoin shines

The DeFi Composite Index, which was first launched by Binance Futures in late August, is experiencing its second month of exposure, trading from its all-time high of almost USD 1,200 to below USD 400, a decline of around 60%.

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In fact, most DeFi tokens have wiped 70% to 90% of their profits since the beginning of September, according to Binance’s November 5 report. In early October, Cointelegraph reported that the index had already fallen sharply to USD 507. The all-time high on the first day of trading at the end of August was USD 1,189.

As the report outlines, only eight DeFi tokens, AAVE and UNI, showed a neutral correlation with Bitcoin in the 45 days leading up to November 1. Eight other DeFi tokens had an entirely negative relationship. And in addition:

“7 out of 13 DeFi tokens had negative correlations with Ethereum (ETH), even though Ethereum powers much of the DeFi ecosystem. DeFi’s negative correlation with BTC and ETH is no surprise as the DeFi bubble came to a crashing end in September. “

This week, UniSwap’s decentralized exchange (DEX) recorded $ 1.8 billion in volume, which makes up the lion’s share of DEX trading. The monthly volume for all DEXs combined is around 2.8 billion US dollars.

BTC market capitalization, trade volume dominance also rising

The dominance of Bitcoin market capitalization has risen sharply in the past few weeks. The rising price has increased by almost 10% since the beginning of September.