DeFi 2.0 Suffers 98.5% Loss Amidst The Bear Market! Here Is Why

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Mr. Jason Choi, a member of the Forbes 30 Under 30 list, co-founded the Spartan Group. Spartan Group is the most successful Web3 venture capital fund in the Asia Pacific region. Mr. Jason expressed his views on the current cryptocurrency “bottom.”

DeFi 2.0 loses 98.5% on average

All forms of utility and governance holdings related to the decentralized sector have been hit the hardest by the crisis, according to Mr. Choi.

DeFi peaked in May 2021, not November 2021, and like Bitcoin (BTC), their bear market lasted 400 days instead of 207. Even the most prestigious DEXs have seen their assets fall by an average of 90%.

Meanwhile, “new DeFis” or “DeFi 2.0” protocols such as Redacted Cartel (BTFRLY), Olympus (OHM) and Wonderland (TIME) have been hit harder. In total, they lost 98.5%.


Certain approaches in the overhyped Solana (SOL) ecosystem, such as the AMM-powered DEX Sabre protocol (SBR) and the Step Finance (STEP) DeFi protocol, lost over 99% compared to ATH.

Historically, Layer 1 protocols (L1) have been less volatile than DeFi tokens. Apart from losses of 63.5% and 65.4%, Ethereum (ETH) and Tronics (TRX) are among the most stable assets.

ATOM describes defensive price action

The only Layer 1 protocol that lost more than 90% was the overhyped currency MINA. MINA was in the news for its post-launch rise. Mr. Cui further stated that the Cosmos (ATOM) ecosystem is a complex cross-chain architecture that exhibits “defensive” price action despite market volatility.

Mr. Cui is unsure of the specific reasons for this situation. These situations may be related to the lack of action by VC funds.

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