It has been a difficult week for the tokens that underpin popular DeFi protocols such as SushiSwap and Lido Finance as they have been subject to severe price drops over the last 24 hours. It’s Thursday morning in the DeFi world.
Tokens backing decentralized finance protocols including SUSH token which was a key feature that Uniswap didn’t have.
SUSHI’s bearish action on the price of SUSHI began after Jared Grey, the DeFi protocol’s newly appointed CEO, was accused of several improprieties in a thread. Grey has since addressed all of the allegations in a public letter, and denied them all.
The token behind Lido Finance is the second-biggest Loser in the DeFi Sector. LDO plunged almost 10% in the last 24 hours, and now trades at $1.19 per token.
Lido Finance commands a market share close to 30% and is the most popular liquid staking platform on the market. According to Dune Analytics, there are no other DeFi or other staking services that have a double-digit market share.
Curve Finance, a DeFi-like-asset exchange, also fell several points on Thursday. The price of the project’s governance token CRV has fallen more than 9% in the last 24 hours. It is currently trading at $0.75
The token was a key player in the Curve Wars earlier this year. Speculators and protocols scrambled for as much CRV as they could, both protocol and protocol, were also affected. At that time, the token was trading at $5.40 per token. This represents a significant 86% drop.
The token behind Uniswap has dropped by almost 8% in the last day. UNI allows its holders to vote and make proposals for changes to the protocol.
Uniswap Labs, the team behind this project, has ambitious plans to compete with its centralized counter parts in Binance and Coinbase. However, token holders might not be as optimistic about these ambitions.
Market participants are focusing on the Core Price Index (CPI), which will be released this afternoon. The inflation rate is expected to continue its upward trend.
If the figures show that inflation continues, it is likely that the Federal Reserve will increase its rate hikes. This could lead to asset prices, crypto, and other assets continuing to fall.