The LUNA phenomenon is negatively affecting the DeFi market

If we thought that the price action of the cryptocurrency market had entered into apparent stability, it is to be noted that while Bitcoin is anchored in a sideways zone between $28,000 and $30,000, on the other hand, the DeFi market succumbs to this unstable reality that the entire cryptocurrency market is going through.

When I refer to the DeFi market succumbing, it is because in the last 12 hours it generated a chain depreciation of most of the DeFi tokens with the largest market capitalization, to the point of plummeting and falling to the same lows recorded last year.

It is worth mentioning that according to data reported by the main decentralized platforms, the funds blocked in DeFi went from $231 billion in April to less than $110 billion in May.

This dramatic setback experienced by DeFi investment funds is somehow related to the price collapse of LUNA and all this adverse scenario that affects the credibility and health of the entire cryptocurrency market.

It should be noted that decentralized finance platforms maintained a constant growth last year with a last quarter in red balance, and on the contrary, in this month of May to the point where the deposited funds reached low levels in contrast to the last three months of last year, a fact that is undoubtedly related to the bear market that cryptocurrencies have been developing and to the recent and resounding fall of LUNA.

As I mentioned before, the LUNA phenomenon has become a major factor pushing the cryptocurrency market down, and the figures that DeFi has been showing in the last few days confirm this.

Ezra Reguerra DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy. Link

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