According to TechFlow, the proportion of DeFi market value in the global cryptocurrency market value has fallen to its lowest point in three years. Last Friday, the DeFi index fell to 2.84%, the lowest level since early January 2021.
Since September 2022, DeFi dominance has been on a downward trend overall, falling to 4.47% at the beginning of 2024. So far this year, DeFi dominance has fallen further by 29%.
The reasons for the lack of investor interest in DeFi tokens include the Meme coin craze distracting investor attention and funds, the high fully diluted valuations of many DeFi tokens raising inflation concerns, and the private placement investor unlocking mechanism in DeFi projects being considered unfavorable to retail investors.
In addition, the launch of Bitcoin and Ethereum ETFs has attracted institutional investors to pay attention to these mainstream assets.
