FreeBtcTap - Bitcoin And Altcoin Crash Due To The Defi Bubble Rumors?

The decentralized exchanges are based on the Ethereum policy which drove up Ether’s price, which trend is also pumping Bitcoin up. The persistent reports of wealth creation are literally eye-catching, specially for some rocket tokens when portions of people are suffering economic recession and capital lockdown.

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The Yearn Finance (YFI) token recently surged to three times the value of Bitcoin, the monarch of cryptocurrencies, which suggests to be a remarkably delicate event. Other tokens including YFI, YFII, and SUSHI massively surged due to the DeFi hype as well.

Although an array of good returns are so pleasant and fascinating, the truth may be a bit different. According to crypto research firm Messari, yield farming “has become a game for whales who are capturing the vast majority of rewards.”

As some investors see profits, they may cash out vigorously when negative news appears. The “fear of missing cash-out” could also lead to an avalanche in token prices. The SUSHI token dropped around 44.4% from $11.17 at its peak to $6.21. Although the price recovered a bit, there could be a second dip.