- Meme coins rise in price amid the development of the DeFi market.
- YFI tokens fall in price by 20% per day.
- The decentralized finance market remains unstable.
The DeFi market has grown to $ 15 billion over the past three months. Meme coins, the value of which directly depends on their popularity on the Internet, have also increased in value. Surprisingly, zero-value tokens can skyrocket in value if the users find them cute on social media.
Tacos, Sushi and Hotdogs rise in price
DeFi hysteria continues to consume the cryptocurrency market. In the last week alone, the decentralized finance sector has raised another $ 1 billion. Surprisingly, not only serious DeFi tokens are growing in price, but also meme coins, which essentially have zero value.
Let us take, for instance, the Sushi token that has become the undisputed leader among coin-memes. The SushiSwap protocol, which is an evolutionary version of the Uniswap DeFi protocol, allows Sushi coin holders to earn money by providing their funds to the pool.
The token, which appeared at the end of August, was able to rise in price to $ 10 apiece in a matter of days and also quickly fall. Today the coin is trading at $ 3.03.
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Another “edible” Tacos token is rising in price by an average of 2-3% per day. As the developers themselves explain, it is a deflationary currency that allows liquidity providers to provide assets to users of the UniSwap protocol. It is not yet clear how effective the token is, but the organizers do not hide that this is a crypto game and a token meme. Today the coin is trading at $ 0.022 per share.
Dogecoin, often referred to as Elon Musk’s favorite coin, has also risen in value and is now trading at $ 0.002. The developers are positioning Dogecoin as an alternative digital currency. Recall that the token rate skyrocketed in July this year after the tweet of Tesla founder Elon Musk. It depicted Dogecoin crushing the entire financial system. “This is inevitable,” Musk commented on this forecast that the coin could gain the status of a hegemonic currency in the global monetary system.
Immediately after that, information appeared on the network that hackers were using Dogecoin for their own purposes. Intezer Labs reported that hackers control malware on Linux operating systems to mine Monero cryptocurrency using the Dogecoin meme coin. Analyzing the relatively new Doki backdoor Trojan virus, they discovered that it is being used to attack public web servers for mining purposes.
However, the experts themselves do not take such coins seriously and consider their popularity to be a temporary phenomenon.
Experts don’t believe in the success of memes and DeFi
If the above coins are traded relatively cheaply, there are coins at exorbitant prices on the decentralized finance market. For example, YFI and YFII, the price of which immediately grew by 100-200% per day. The growth rate of DeFi tokens this year is largely ahead of Bitcoin and other large-cap digital coins. On this wave, projects that serve the DeFi infrastructure are floating well. For example, LINK, the token of the Chainlink project, is also showing a powerful upward trend.
The coin of yearn.finance project, YFI, has risen in price by more than 151% over the week, making bitcoin holders angry. But the volatility is huge – the coin’s price has quickly dropped 23.6% and is trading at $ 22,347 at the time of writing.
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This outcome was quite predictable, as experts warned that the DeFi market would collapse before the end of the year.