Crypto market correction hits DeFi tokens hard

Cryptocurrencies related to DeFi projects have fallen more than Bitcoin and Ethereum during the recent market downturn.

Decentralized finance (DeFi) tokens seem to be taking heavy price hits as widespread correction in crypto markets continues today. According to CoinGecko, top DeFi projects, including Aave, Uniswap, Chainlink, and Terra, have lost 20% and more of each of their value overnight, falling harder than market leaders like Bitcoin or Ethereum.

Tuesday morning, maintaining a bullish trend, Bitcoin was hovering for $52,774, while Ethereum almost reached the $4,000 thresh hold; and then disaster struck. There was a steep drop of 13% in the total crypto market cap by a few hours, followed by 11% and 15% losses from Bitcoin and Ethereum, respectively.

However, the losses of DeFi tokens are even worse today. Chainlink, an Ethereum-based oracle network that provides on-chain data for smart contracts, has dropped in value by 16.4%  to $27.13 in the last 24 hours. Uniswap, the token powering the popular eponymous decentralized exchange, lost 14.7% overnight, lowering to $22.77. Decentralized lending protocol Aave also crashed 12.5%, trading at $315 as of writing.

Outside the top 10 of DeFi tokens by market cap, Pancake Swap lost 17.4% of its value overnight to trade at $19.222, while Terra depreciated 8.3% to land on $27.06.

As the market cap of the global crypto market is currently down nearly 10%, the widespread double-digit losses among DeFi tokens show this sector has been taken by surprise by the market correction.

As reported before, DeFi Platform the Poly Network suffered a $612-million hacker’s attack – the biggest-ever heist in DeFi history. However, the suspected hacker has already returned the stolen funds, saying he did it “for fun.”