DIFA projects have dominated the headlines of late, and the unexpected departure by a high-profile founder had ripple effects in the crypto markets. Here are the top stories from last week:
SUSHI’s parabolic growth went upward when the head of the project cashed out all of its chips earlier this week, and the resulting sell-off dropped the rest of DIFE, ETH and Bitcoin (BTC) from its prescription, including Some were for high years.
However, there is a silver lining for this cloud.
Cryptocurrency Market Weekly Performance Snapshot. Source: Coin360
The chef of SUSHI “leaves the kitchen” but can the rest of the crypto tolerate the heat?
SushiSwap, a fork of UNISAP, successfully transfers Uniswap liquidity to its protocol. SushiSwap had about $ 810M tokens, or 55% Uniswap liquidity. By the end of this process, according to Debank, the price at SushiSwap had reached a high of around $ 860M.
Shortly after SUSHI was hit, the high, anonymous founder “Chef Nomi” withdrew all of the company’s funds (valued at about $ 27 million), shortly thereafter stating that the money was for development and not from the company Would be taken, and then begged Cointelegraph not to commit an exit scam. The move led to several crypto comedians on Twitter claiming that Nomi “left the kitchen.”
Apparently, the SUSHI token sold out almost immediately as people lost confidence in the viability of the project. Celloff was so fast that it devastated the entire crypto asset sector, taking the rest of the DFIs and even ETH and bitcoin with it. At one time, Daffy as a whole was about 50 percent below the earlier height.
Many experts have been vocal about the DFI bubble bursting and even compared it to the ICO bubble, stating that people have not learned anything since.
While “Bubble,” as it is, may eventually pop, it will prematurely call it the end of the DIFI era. Eventually, Cardano (ADA) and even Tejos (XTZ) may join the party someday.
A rising tide … finally goes out
Bitcoin and other tokens have fared better for most of the time until recent years, and the biggest cryptocurrency has been trying to finish the week on a carefully and consistently positive note.
Additionally, there are many positives following Chef Nomi’s capitulation, despite market uncertainty that did not help all sentiment and led to widespread capital-based flight amid concerns of an exit scandal.
The BTC fell below $ 10,000 after a $ 12,400 surge a week ago and has been hanging around that key support level ever since. ETH has almost decreased it, however, falling from its highest level in 2018 ($ 485) to a low of $ 322 in the week before settling between $ 360 and $ 370 compared to the previous week.
As of Friday afternoon, there are signs that the market is building a solid foundation before attempting to grind higher. Defy’s capital flight has ended, and according to the flattening of the futures curve, the shell of leveraged positions has also reversed.
Rumors of Daffy’s death have been exaggerated.
The DFI may be down, but it is hardly out. New money continues in existing protocols and undoubtedly, more are being manufactured there. They will be accompanied by monetary and community support.
DEFI Total Price Lock (USD). Source: Defulse
There is another huge difference from the ICO boom of 2017 – a much more established secondary market. Digital asset markets have grown by leaps and bounds over the past two years, mainly due to the rapid maturity of projects and the people behind them.
In the Daffy world, merchants can earn so-called tokens in exchange for providing liquidity for decentralized exchanges and lending protocols such as balancer and compound. Governance tokens can be used to vote for improvements to the underlying protocol.
Such encouragement did not exist a few years ago when people were spending money on white paper and prayers for vaporware. Many times they are ‘changin’, and Daffy could potentially move on.