Ethereum DeFi Assets Drop 23% Amid Major Price Correction

Amid losses in the DeFi space, Ethereum DeFi assets have recorded significant drops. Decrypt reported that the top 10 DeFi assets had an average loss of 23.4% in the past week. The recent loss is a further plunge as the DeFi assets fell an average of 27.44% over the last 30 days.

The report further revealed that UMA lost the most in the last 30 days. UMA lost 58.7% to hit its lowest value of $6.04 since August. Similarly, Yearn Finance (YFI) is the worst performer in the last seven days. Currently at $14,525, YDI lost 36.93% in a week.

According to Decrypt, the losses occurred after a period of speculative activity. Notably, cryptocurrencies react to the speculative period by shedding some weight, which could be temporary, long-term, or permanent. However, new assets like YFI, UMA, and UNI appear to be impervious to the sell-offs.

Despite the losses, these coins have been performing well since the beginning of the year. As stated in the report, eight of the top 10 DeFi assets are up against the US dollar (USD), considering their 2020 performance. Since the beginning of 2020, Aave (LEND) has gained 2,252%, followed by Yearn Finance, with a 1,271% increase.  

Before the recent losses, Ethereum experts cautioned that the heavy addition of players in the DeFi space might be a bubble that could eventually burst. 

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