93% of the world’s 250 big coins plunged in September

The reason comes from DeFi, when its fever gradually cooled down in September, 

Over the past few months, DeFi protocols including Yearn.Finance, Compound, Synthetix and Chainlink have seen their token prices soar, sparking rumors of a record price spike.

Thanks to the DeFi boom (DeFi built on Ethereum) the impact on ETH increased from $100 in March to $470 in August.

Ethereum Price (Source Bitstamp)

However, in recent weeks it has been the opposite, with the ETH price falling to around $350.

According to the report, 72% of the world’s 250 big coins have dropped their prices by week, 93% by month.

Looking at Messari’s DeFi chart, in September, most DeFi tokens adjusted between 15% and 85%, with bZx Network losing 85%, Curve down 78%, Swerve (-76%), Ren ( -57%), Balancer (-53%), THORChain (-52%), Synthetix (-34%) and AAVE (-29%).

For a better understanding of what’s going on here, take a look at the rotating 7-day index using the ratio of new highs to minus 30-day lows. The chart shows price cuts not seen since the March sell-off but fortunately, there is still a long way to go from the depths of winter 2018.

The proportion of assets creating new top minus rate of assets creating a bottom in 30 days (Source: CM Market Data Feed)

While the recent pullback has left some traders wondering if the party is over, a trend reversal is common in bull markets. During the bull market of 2017, there were a lot of price cuts.

For example, in early 2017, when Bitcoin hit $1,180 for the second time, it caused a massive sell-off and the money 4.0 market fell almost 40%. Such ideas will make investors turn their backs on Bitcoin. But then we saw the miracle happen, Bitcoin hit an all-time high of $20,000 by the end of that year.

Historically it can be seen that corrections have been normal and are only part of a larger trend, this year’s market action reminds them of 2016.

“We move in bubbles and a four-year cycle. While everyone is just thinking about what will happen today, this week or this month, you should zoom out and reflect where we are really headed. The long-term trend is clear: It’s bullish. ”

Source Cointelegraph