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In recent months, there has been virtually no talk of anything other than decentralized finance (DeFi). And, after Compound launched its governance token on the market, the sector has experienced a true boom, which has made it increase its value exponentially in a few weeks. However, as mentioned by crypto market analyst Scott Melker in the Tweet of the day, now the DeFi goes into pause:
An indefinite pause in the DeFi?
Few events have caught the attention of crypto users in recent years as much as the rise of DeFi. And it is that, since the great bullish rally of the year 2017, when the price of Bitcoin touched 20,000 dollars. Investors in the crypto world had not witnessed such a sharp and sudden increase in the value of any asset.
Thus, in a matter of weeks, the main DeFi protocols increased in value several times, launching their own governance tokens, as was the case with Uniswap. While other decentralized finance projects accelerated their launch to the market. Conquering spectacular prices in a matter of days.
This enormous wealth created practically overnight, led users of the crypto market to turn to DeFi en masse. Increasing the demand for these tokens, and therefore their price in a speculative cycle that, according to Scott Melker, could have finally come to a pause.
«Gas is cheap once again, the DeFi fever has clearly entered a hiatus«.
Thus, Scott Melker only points out what the price performance of the main DeFi tokens has been showing in the month of October. And the fact is that the initial speculative wave around this sector is stopping. What can be clearly seen in the decrease in commissions within the Ethereum (gas) Blockchain, which had reached record figures due to DeFi. And that, now they would show the pause in the rise of these protocols.
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