DeFi tokens are oversold

[christiancmrg 18]

Due to a pullback in Yearn finance and Aave this may be indicating that the DeFi market may be oversold.

One truth is that during the past month the cryptocurrency market has had great volatility. At the same time the defi system has been on a huge uptrend as the total value locked on DeFi platforms exceeded USD 10 billion, but very important news such as the unexpected result in the COVID19 test of the President of the United States, Donald Trump, has put greater pressure on the defi market.

 

If a project's TVL is stable and earnings are increasing, a significant price drop probably means extreme caution in the DeFi market. Similarly, Uniswap and Aave posted a sharp drop in their price, while both posted an increase of more than 235% in their revenue.

[deliabtc 38]

9 minutes ago, christiancmrg said:

Due to a pullback in Yearn finance and Aave this may be indicating that the DeFi market may be oversold.

One truth is that during the past month the cryptocurrency market has had great volatility. At the same time the defi system has been on a huge uptrend as the total value locked on DeFi platforms exceeded USD 10 billion, but very important news such as the unexpected result in the COVID19 test of the President of the United States, Donald Trump, has put greater pressure on the defi market.

 

If a project's TVL is stable and earnings are increasing, a significant price drop probably means extreme caution in the DeFi market. Similarly, Uniswap and Aave posted a sharp drop in their price, while both posted an increase of more than 235% in their revenue.

How such an important person can influence markets worldwide both in traditional markets and in the crypto market

[its.cryptologic 163]

Yes defi projects that offer yield farming for high returns with payment in their own coin often result in fast inflation and fast price decrease. This is what you must watch out for. You are earning off providing liquidity to their exchange. 

[pilat44 16]

it is necessary to be very carefull in defi projects.

[haplo80 16]

Unluckily it almost always follow the pump and dump trend

[Trader123 32]

I think defi tokens are over evaluated, see uniswap token (UNI) it's decreasing in price.

[eren24 14]

defi tokens will continue to be sold but the market is very bad especially defi sub coins are in deline

[MohamedYaiser 1]

You must be necessary in the defi air drob

[Chysom20 30]

I think not all Defi projects are over sold but majority of them. I smell a big bubble in Defi very soon. what happened to Yam token is likely going to happen to many projects. 

[AlexRay 54]

Are DeFi tokens oversold? Yes! Will it stop anyone from buying? DeFinitely no. Hamsters will push the DeFi market up, even though it’s not in good shape now.

[mbohhe 51]

I can only agree with this.

We are at a point, where you see new projects everyday claiming to yield you thousands of procent in APY.

This can be compared to the 2017 ICO craze.

The hype is driving the Defi space right now, and when we see the next big thing in crypto, we will start to only see legit projects here. I believe it will take some time still.

[drmustafaunal 10]

yes, they are always unstabil.

[john1010 80]

The DEFI project seems on trend this year, but infairness, compare to ICO token that are verym rampant 2-3years ago, I have my feelings that Decentralize Financing is reliable rather than ICO project, some of my friend told that this is a good start to financial freedom.

[Michar1 1693]

The defi tokens are too many, and I think their monetary values will rise a lot, currently there are different tokens that could be alsist and will be worth a lot, it is just waiting with time.
Good post greetings.
 

Edited November 15, 2020 by Michar1

[Mohmaza 46]

However, various data points show that the fundamentals of the major DeFi tokens remain strong.

 

In certain, Maker, Uniswap and Aave saw their income increase between 130% and 440% in the last 30 days and this occurred

[tienda 8776]

On 10/31/2020 at 10:40 AM, Nboramir said:

continued to rise rapidly, and the amount locked on decentralized finance protocols exceeded $ 11 billion, as reported by Cointelegraph. this is a really big number.
 

Yes @Nboramir more than 11 USD billions and really is the big number. Days ago a lot of DeFi project and program did their promotion in offered tokens with high amount of free extra when you buy their token, and also there are some service offer the staking with high interest. So I think this is the reason why DeFi tokens are oversold.

[MoodyMisanthrope 34]

Well, for reputable DeFi projects like LINK, Aave etc. that might be true but it's to easy to generalize and say that all DeFi Tokens are oversold. There are plenty DeFi Tokens that were only created to ride the hype. Similar to alot of the ICOs that were issued in 2017/18. These kind of tokens will bleed out slowly. There is no real motivation for the ones that created them to actually develop any further.

[Tom Brandon 226]

We have seen last few months defi coins is trending.Due to rising up Yearn Finance coin price then other defi coins market going up.More people buy or sell defi coins in the market.

[Amiami 1362]

Leaving aside the fact that an overselling is rumored, that is, a bubble in DeFi, the amount of scams that have occurred since the appearance of the UNI token, fake airdrops, duplicate tokens and even exchanges that stole the users, this type of situation scares potential investors, and the announcement of a vaccine also affected prices in general.

[joyeetamedia4 7]

Regardless of this, Producer (MKR), Uniswap (UNI), Yearn.finance (YFI) and other decentralized account tokens (DeFi) saw their qualities plunge in the previous fourteen days. Notwithstanding, different information focuses show that the basics of the major DeFi tokens stay solid. 

In certain, Producer, Uniswap and Aave saw their pay increment somewhere in the range of 130% and 440% over the most recent 30 days and this happened when the costs of their fundamental tokens fell considerably.

[Relium 424]

when a new token or coin released in his ico project team sells more coin than actual distirbution ammount because they know some of the users do not remember their purchase and they will earn more money

[Rozy 1918]

hi guys, I know that I ask a lot but tell me how would I learn if not so? what do mean by defi is it a wallet? or a kind of project that gives high interest for depositing your money? I think that whenever there is a large amount of money returns there is a high possibility of a scam. 

[Sultanashiq 336]

One should necessary in the defi air drob.Its market does not remain the same 

it is sometimes uper and sometimes down

be care full while using it 

[MrSpasybo 1049]

It's really hard to define "oversold", and I think it will mean very differently to everyone.

To me, this is just a correction to the actual size and potential of the market, as we have seen 500% -1000% growth in DeFi tokens in the short term. And I believe that if this correction does not happen, we will face the risk of these projects collapsing.

And I do believe that when this correction is over, some truly potential projects will continue to exist at more APY & affordable prices.

[Whited35 15285]

On 10/5/2020 at 9:06 AM, christiancmrg said:

Similarly, Uniswap and Aave posted a sharp drop in their price, while both posted an increase of more than 235% in their revenue.

Now DeFi markets are experiencing the Cooldown. There was an extreme craze in DeFI and investors were loving to invest in DeFi tokens after noticing the massive volatility in the prices of DeFi tokens. Uni from Uniswap and YFI from Yearn Finance have made the dramatic comeback in the DeFi markets to break so many records. You can check this topic which I have already created in this forum.