This trend carried through for a significant amount of time, but how are the tokens that shaped the DeFi industry boding in the last year pinned against Ethereum – the network where it all started?
2021 was the year that saw what was the biggest bull run in the cryptocurrency industry. Bitcoin peaked at around $69K, keeping the simulation thesis alive and kicking, while Ethereum topped off at $4,878.
Since then, the market retraced, but as it turns out – for some much more than for others.
At the time of this writing, ETH sits at slightly above $3,200, whereas DeFi 1.0 coins have lost a major chunk of their ETH-pegged value.
The above is largely representative of the so-called DeFi 1.0 era when protocols such as Uniswap and Sushi, albeit following major hurdles, shaped the face of the DeFi field as we know it today.
What this goes to show is that the cryptocurrency industry is evolving tremendously fast, and it’s oftentimes imperative to keep shipping new products as the demand shifts constantly.
Of course, another possible explanation could be completely detached of fundamentals but related to the narrative of the day, which may or may not necessarily be what the industry is best off with.