{"id":106270,"date":"2020-11-06T14:00:00","date_gmt":"2020-11-06T11:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/binances-defi-index-crashes-60-as-bitcoin-overshadows-altcoins\/"},"modified":"2020-11-06T14:00:00","modified_gmt":"2020-11-06T11:00:00","slug":"binances-defi-index-crashes-60-as-bitcoin-overshadows-altcoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/binances-defi-index-crashes-60-as-bitcoin-overshadows-altcoins\/","title":{"rendered":"# Binance\u2019s DeFi index crashes 60% as Bitcoin overshadows altcoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37328a8cbde\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37328a8cbde\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/binances-defi-index-crashes-60-as-bitcoin-overshadows-altcoins\/#DeFi_struggles_as_Bitcoin_shines\" >DeFi struggles as Bitcoin shines<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/binances-defi-index-crashes-60-as-bitcoin-overshadows-altcoins\/#BTC_market_cap_trading_volume_dominance_also_rising\" >BTC market cap, trading volume dominance also rising<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Binance\u2019s DeFi index crashes 60% as Bitcoin overshadows altcoins <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">Bitcoin (BTC) resurgence is continuing to sap capital from the altcoin markets as other cryptocurrencies are struggling to catch up to BTC.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DeFi_struggles_as_Bitcoin_shines\"><\/span>DeFi struggles as Bitcoin shines<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The DeFi Composite Index, first launched by Binance Futures in late August, is seeing its second month of strain, trading down from its all-time highs of close to $1,200 to under $400, a decline of roughly 60%.<\/p>\n<p>In fact, most DeFi tokens have erased 70% to 90% of their gains since early September, as Binance\u2019s Nov. 5 report <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/blog\/421499824684901190\/October-Trading-Report-AltSeason-Ends-Abruptly-as-Bitcoins-Dominance-Marks-a-New-High\">notes<\/a>. In early October, Cointelegraph reported on the index\u2019s already stark decline to $507. Its all-time high had been $1,189 on the first day of trading in late August.<\/p>\n<p>As the report outlines, only eight\u00a0DeFi\u00a0tokens, AAVE and UNI, showed a neutral correlation with Bitcoin over the 45 days running up to Nov. 1. Eight other DeFi tokens had a wholly negative relationship. In addition:<\/p>\n<blockquote><p><strong>\u201c7 of 13 DeFi tokens had negative correlations with Ethereum (ETH), despite Ethereum powering much of the DeFi ecosystem. DeFi\u2019s negative correlation with BTC and ETH is no surprise as the DeFi bubble came to a crashing end in September.\u201d<\/strong><\/p><\/blockquote>\n<p>This week, the decentralized exchange, or DEX, UniSwap has seen <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/explore.duneanalytics.com\/public\/dashboards\/c87JEtVi2GlyIZHQOR02NsfyJV48eaKEQSiKplJ7\">$1.8 billion<\/a> in volume, accounting for the lion&#8217;s share of DEX trading with monthly volume for all DEXs combined standing at roughly $2.8 billion.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BTC_market_cap_trading_volume_dominance_also_rising\"><\/span>BTC market cap, trading volume dominance also rising<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin market cap dominance, meanwhile, has climbed steeply in recent weeks with the rising price, now being up nearly 10% since early September. <\/p>\n<p>Binance notes that there is a significant uptick in Bitcoin trading volume dominance as well, arguing that it has been &#8220;suppressed in prior months&#8221; due to the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>&#8217;s preoccupation with &#8220;alt-season.&#8221; <\/p>\n<p>By October, however, the market sentiment &#8220;completely reversed&#8221; in Bitcoin&#8217;s favor with traders shifting to BTC as the altcoin sector declines.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/d32b6e2f-8dcb-49a8-b3df-96fa21098447.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>Bitcoin trading volume dominance, October 2020. Source: Binance Futures, cit. in <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/blog\/421499824684901190\/October-Trading-Report-AltSeason-Ends-Abruptly-as-Bitcoins-Dominance-Marks-a-New-High\">Binance blog<\/a><\/em><\/figcaption><\/figure>\n<p>Binance nonetheless takes the line that the underlying fundamentals of the DeFi market are solid. Even despite these bleak retracements across the board, total value locked in the DeFi sector has kept above $11 billion in the past 30 days.<\/p>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/binance-s-defi-index-crashes-60-as-bitcoin-overshadows-altcoins\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Binance\u2019s DeFi index crashes 60% as Bitcoin overshadows altcoins &#8221; Bitcoin (BTC) resurgence is continuing to sap capital from the altcoin markets as other cryptocurrencies are struggling to catch up to BTC. DeFi struggles as Bitcoin shines The DeFi Composite Index, first launched by Binance Futures in late August, is seeing its second month&#8230;<\/p>\n","protected":false},"author":1,"featured_media":106271,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-11\/253d625c-f833-4afe-9eea-ee7f636c6caf.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75014,74862,74937,74868,74891,75846,73785],"class_list":["post-106270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-binance","tag-bitcoin","tag-bitcoin-price","tag-defi","tag-ethereum","tag-futures","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/106270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=106270"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/106270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/106271"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=106270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=106270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=106270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}