An Exciting Time in the Crypto Community Along with Bitcoin and NFTs, DeFi (Decentralized Finance) has become one of the most popular subjects in the community as of late. On Crypto Twitter, for instance, many traders will weigh in with opinions about the current state of affairs. This week, however, DeFi has taken a bit of a hit. When BTC was skyrocketing to the moon, investors felt comfortable in they positions and were thrilled to nab their gains. With BTC's numbers dipping back briefly to around the $45,000 mark, though, some institutional investors became a bit spooked. After all, BTC's volatility is part of the reason why several traditional financial institutions have been hesitant to dip their toes into the crypto space.
BTC's Notorious Corrections Ever since BTC popped up onto the scene in late 2009, the cryptocurrency has experienced severe corrections from time to time. And with the coin reaching over $58,000 recently, it came as no surprise to crypto veterans when it experienced a sharp dip for a bit. What will be interesting in the coming months and years is to see how traditional investors handle these dips. Will they continue to pull out of the market every time BTC goes low? Every time BTC falls, altcoins are also affected. The recent dip caused many coins to fall as well.
Total Value Locked of DeFI Takes a Bit Hit But Keeps on Ticking One number that keeps analysts on their toes is the TVL in the DeFI community. Lately, however, investors have been bullish. This time around, the math seems to indicate that tokeholders are hanging onto their tokens and remaining optimistic; it's just that the tokens themselves are momentarily losing some of their value — emulating the path of BTC. The DeFi sector is indeed poised on the precipice of something entirely new and exciting.