Despite a retreat from the meteoric bull market for decentralized finance, the average DeFi token yield has significantly outperformed Bitcoin and Ethereum. Average performance, however, is a different story.
On November 17, the pseudonymous cryptanalyst “Ceteris Paribus” shared data with its 12,000 followers, which compiled the YTD median and average performance of 40 top crypto assets, including 38 top DeFi assets, Bitcoin (BTC) and ether (ETH). Currently, around 26 of DeFi assets are seeing YTD gains.
The analyst noted that the median return is 148.8%, which is 15.5% above Bitcoin’s 133.3% year-to-date profit. So half of the DeFi tokens are above this level and half below. Paribus said it was pretty even:
“So far, strong recovery in November, but unlike summer, the median token yield has reached and not exceeded that of BTC.”
However, the average performance of 428.7% in 2020 is more than three times the profit of Bitcoin.
As of this writing, DeFi’s top performing assets for 2020 are AF (AAVE) up 4,245%, Band (BAND) up 2,466%, and Yearn Finance (YFI) up 1,597%. THORChain (RUNE) is the only other at 1,203% DeFi token that has a four-digit YTD.
The worst assets in the sector to date are Curve (CRV), SushiSwap (SUSHI) and Swerve (SWRV), with losses of 88.7%, 80.1% and 79.9% respectively.
DeFi assets have seen extreme volatility in the past few months. 10 of 29 DeFi tokens posted gains of more than 1,000% in August, while CRV was the only asset to be in the red in late August.
However, only Gnosis (GNO) and Hegic (HEGIC) saw single-digit gains from September to October, while the remaining 34 tokens were stumped – including five tokens that fell by more than 89%.
In November the volatility was comparatively low so far. 32 of 38 tokens achieved a median and average performance of around 20% and 35%, respectively.