• 26 May, 2024
News

Transaction Volue of Top DeFi Bluechips Drops by 70%

The decentralized finance (DeFi) ecosystem has encountered a notable downturn in transaction volume, particularly among its leading tokens. Recent data from IntoTheBlock indicates that the transaction activity of top DeFi bluechips, UNI and MKR, has sharply declined following their peak in March. Last week’s transaction volume for these major tokens stood at just over $1 billion, reflecting a 71.3% decrease from the high point in March.

This significant decline in activity for UNI and MKR demonstrates broader challenges within the DeFi sector. The peak in March showcased the potential for decentralized finance to thrive, but this downturn raises questions about the sustainability of growth for these bluechip tokens. Other factors could be at play as market participants reassess their positions and strategies.

The stark drop in transaction volume is worth monitoring as it can have broader implications for the entire DeFi ecosystem. A reduced transaction volume often signals shifts in sentiment and activity, which could impact other DeFi protocols and tokens. The trajectory of DeFi bluechips like UNI and MKR will be crucial to watch. Their ability to rebound or stabilize will provide the overall health and future potential of the DeFi sector. 

Looking at Uniswap’s native token market performance at press time, UNI’s price stood at $7.57, recording a decline of 4.30%. Over the past week, UNI has recorded an increase of 4.59% as the broad market recovers from the recent dip, while the monthly chart displays a significant decline of 33%. The market capitalization and the trading volume have their values at $4.5 billion and $115 million, respectively.

Moreover, Maker’s price movement has been tremendous following the sharp correction on May 1st despite the quick recovery. As per the latest data fetched at the time of writing, MKR exchanged hands at $2,842, an increase of over 6% in the past week. On the monthly chart, MKR has recorded a decline of over 20%. Maker’s trading volume is at $64 million, representing +19%, while market capitalization is at $2.6 billion.

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