When the cryptocurrency market got into a downturn on Wednesday, the centralized exchanges like Binance, Gemini, Kraken, and Coinbase suffer a halt in operations while the decentralized exchanges (DEXs) like 1inch and Uniswap are still intact and up and running without any hitch.
Though the comparison is not side-by-side because the trading volume of DEXs is much smaller, the decentralized exchanges have revealed through resilience that they are the right place for the traders that are crypto-savvy for their DeFi token swap.
On Sunday, however, the huge fall that the crypto market experienced was so huge that even the DeFi tokens could not escape the impact.
The price of BTC saw another 14% drop to $32,000 on Sunday. ETH another 16% to about $1,900 and BNB (Binance Coin) 24% to around $235.
Top tokens in the DeFi Protocol even fared worse. UNI (Uniswap) fell 25%, and LINK (Chainlink) saw a 24% drop, AAVE (Aave) declined 24%, and MKR (Maker) saw a 19% decline.
The native token of PancakeSwap, CAKE, which is also the top Decentralized Exchanges built on BSC (Binance Smart Chain), tanked about 29%. In addition, the native token of the BSC DeFi protocol PancakeBunny, BUNNY, saw a 45% on Sunday, but that came from the PancakeBunny attack of about $45 million that happened earlier this week.
This damage to the tokens implies that no type of token is safe and immune from the broad crypto crash.
The selloff that continued this weekend is a market freefall that started ten days ago when the Tesla and Space X CEO, Elon Musk, declared suddenly that his automobile company would stop accepting Bitcoin as a form of payment due to huge and uncontrollable carbon footprint. In subsequent days, Musk continued his BTC criticism for its impact on the environment and reiterated his ambitions of making Dogecoin a more sustainable token.
Some other bearish headlines came from China to make the case worse for BTC. First, the payment associations of China reaffirmed their negative stance on crypto and reissued warning to the general public on it as speculative trading. A few days after, the Vice Premier Liu He-led Financial Committee reinforced its position on BTC mining as a high-risk sector.
Aside from the China and Musk impact, the reputation of Bitcoin was affected when the Colonial Pipeline hackers scoop $90 million in a BTC ransom.