DeFi has lost its sheen gradually to register a massive drop. Since reaching its peak of $9.512 Billion, DeFi has taken a prominent hit and dropped by 22%.
Unfolded shared a tweet about the drop and also pointed out that is is DeFi’s first major correction.
The drop began for the first time on September 2 when DeFi hit its peak value of $9.512 Billion. It coincides with the earlier observed crypto market sell-off that saw Bitcoin fall from $12k levels and retest $10,000 on four separate occasions
Firstly, it is suspected that Bitcoin miners from China dumped their bags of BTC on multiple crypto exchanges. Secondly, it is known that Bitcoin is highly correlated to the stock market that has also experienced considerable losses in the past week.