DeFi tokens, including Lido Finance (LDO), Synthetix (SNX), and Curve (CRV), have posted significant losses of at least 9% over the past 24 hours.
LDO, the native token behind the popular staking platform Lido Finance, is down 10.2% over the past 24 hours and currently changes hands at around $1.38.
The 78th-largest cryptocurrency by market capitalization, LDO, is down a whopping 92.56% from its all-time high of $18.62 recorded in November 2021, according to data from CoinMarketCap.
SNX, which powers the synthetic-creating platform Synthetix, has also dropped 9.89% over the past 24 hours. The DeFi token enjoys a market capitalization of nearly $342 million but has shed 89.62% from its all-time high of $28.77.
CRV, Curve Finance’s governance token, has also entered bear territory over the past 24 hours.
Despite hefty gains on the heels of its stablecoin launch announcement, today’s bearish action has brought the token back down to earth.
Other DeFi tokens, including Chainlink (6.7%), Bancor (5.3%), and Aave (5%), have also posted losses in the last 24 hours.
DeFi, crypto and the Fed
A key reason behind the plummeting value in DeFi tokens is the U.S Federal Reserve meeting later today. Markets across the board, not just crypto, anticipate yet another large rate hike.
With peaking inflation across the globe and in the United States, the U.S Fed is likely expected to increase the interest rates by another 75 basis points.
Though increased interest rates result in juicy bond yields, it also hinders investors from pouring money into risk-on assets like stocks and cryptocurrencies, including Bitcoin and Ethereum.
Bitcoin has dropped nearly 4% in the past 24 hours, but Ethereum has fallen even further. It should also be noted that the majority of DeFi activity is built atop Ethereum too.
Ethereum (ETH), the second-largest cryptocurrency with a market capitalization of $171 billion, shed over 7.39% over the past 24 hours and trades around $1,413.
ETH is already down 71.16% from its all-time high of $4,891 recorded in November last year, according to CoinMarketCap.
Perhaps one piece of bullish news amid all this red is that of Ethereum-based NFT sales; according to CryptoSlam, sales volume has increased by 30% over the past 24 hours.