We’re back again to take a look at the behavior of the DeFi market for the last 7 days to see if it reflected the movements of the overall crypto market, or if it follows its own trends while being slightly influenced by the outside behaviors.
Yet again, we immediately rule out the downward spike in the plot as an outlier, so we can analyze the entirety of the tendency during the week. Again, we see a similar tendency in the same period of time between the both sectors: the overall market went down a 6.23% while the DeFi market fell a similar 6.06%. However, they way both reached the numbers are quite different, since we didn’t see sharp rises and falls when compared to the movement of cryptocurrency.
Maker remains as the top dominant project in the entire DeFi environment, representing nearly 50% of the Total Value Locked, giving it a similar role to what BTC does to the entire cryptocurrency landscape, albeit in a lesser scale (since BTC holds over 60% of the entire value of crypto). We again see a demonstration of the inherent stability associated to DeFi, as money is mostly stored in smart contracts that hold an amount of tokens that fluctuate slightly.
We still have to wait and see how this sector of the market reacts to a strong and steady tendency, instead of bounces that last for a few hours or days, but it’s nearly impossible to predict when that might happen, so stay tuned!