DeFi tokens plummet 10%-20%, Pendle leads the decline, crypto price action is weak this week
The cryptocurrency decentralized finance (DeFi) space has been hit harder than the broader cryptocurrency market this week, with the CoinDesk DeFi Index down 9% after Monday’s highs, while the CoinDesk 20 benchmark fell 5% in the same time frame %.
Leading the way lower was Pendle's governance token - a DeFi protocol that offers cryptocurrency yields in the form of tradable tokens - which fell more than 20% in trading on Tuesday and Wednesday, with short positions piling up in bets on further losses.
Defillama data shows that the protocol saw a significant $3 billion drop in the value of assets locked on the protocol (TVL).
“Currently the returns from future pools are not very good, so people are choosing to withdraw rather than hold on.
These drops come after a large cryptocurrency investor or "whale" moved $6.2 million worth of LDO and $4.5 million in AAVE to cryptocurrency exchange Binance early Wednesday, likely with the intention of selling the tokens , one observer noted, citing blockchain data on EtherScan.
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The DeFi sector’s struggles coincide with a downturn in the cryptocurrency market, with both Bitcoin (BTC) and DeFi hotspot Ethereum (ETH) consolidating in range below their March highs.