Crypto Exchanges and DeFi Tokens Stumbles Upon Market Slump

Crypto Exchanges and DeFi Tokens Stumbles Upon Market Slump

Ever Since last week, the complete crypto market is in a very miserable state of condition. This directly affected most of the crypto exchanges as well as top DeFi tokens too. Exchanges like Coinbase, Binance, Kraken, and Gemini are taken into account including DeFi tokens like Uniswap (UNI), Chainlink (LINK), Aave (AAVE), and Marker (MKR).

Crypto Crash Effects

Wednesday marked the debut of the epic downfall of the complete crypto market. The instant effects directly hit most of the centralized exchanges such as Coinbase, Binance, Kraken, and Gemini. During this time the only ones that kind of narrowed out of the impacts were the decentralized exchanges such as Uniswap and 1 inch. Yet, there’s no point in comparing centralized to decentralized exchanges, still, many crypto traders turned their heads and eyes towards the DeFi tokens. It’s a known fact, DeFi’s are of less trading volumes compared to the coins.

Furthermore, ecstatic changes took place on Sunday which witnessed complete swiping of the crypto market upon the bear hands. Uneventfully, now the DeFi’s faced the same fate as the cryptocurrencies. 

Bitcoin(BTC) dropped  to $32,000 due to plunging 14%, Ethereum (ETH) down to $1,900 denoting  16% drop, and Binance Coin (BNB) down to $235 denoting 24% drop.

Regarding the DeFi’s, Uniswap (UNI) drops by 25%, Chainlink (LINK) drops by 24%, Aave (AAVE) drops by 24%, CAKE (native token of PancakeSwap) drops by 29% and Maker (MKR) by 19%.

All this contradicts , if crypto suffers , so do the tokens too.

Crypto Crash Engenders

The collapse of the entire market started around 10 days ago when Elon Musk officially announced the cease of Bitcoin (BTC) payments for Tesla products. Though by constantly degrading BTC during the following period, he meanwhile assured grade endurance for Dogecoin. 

In addition to this, a week before, China officially announced a ban on crypto exchanges, trading, and regulations for them. This furthermore worsened the situation of the crypto market.

Furthermore, the news of a hack on the Colonial Pipeline added more fuel to the fire. This ransomware hack accounts for about $90 million worth of BTC.

All the above took place one after the other leading to the epic collapse of the complete crypto market.

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A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.