With the crypto market sliding, it is important to look at the reasons behind this volatility. One of the main reasons for the market slide is the total value of decentralized finance (defi) tokens. The defi token has fallen by 2.24% against the U.S. dollar in the last 24 hours. This is alarming news, as it shows that a lot of money is being locked in this market.
Cryptocurrency market dip strands $32B in smart contract tokens
The cryptocurrency market is seeing a slight downtrend this weekend, with the value of smart contract tokens and the total value locked in defi dropping. At press time, the smart contract token economy is valued at $32 billion.
This dip is likely attributable to two factors: Firstly, there have been concerns about the security of blockchain-based smart contracts following recent high-profile attacks. Secondly, regulators are clamping down on digital assets and exchanges, making it more difficult for people to trade and invest in cryptos.
Given the overall crypto market slump, it’s no surprise that total value locked in decentralized exchanges (DEXs) has fallen below the $50 billion mark. This is serious news, as it means that a large chunk of the total crypto market is still inaccessible and out of reach for the average investor. While this may seem like a negative trend at first, it’s worth noting that the overall market value is still much higher than it was at this point last year. So while there may be some pain today, the overall market is still in good health.