Despite Uniswap rising to become the leading decentralized finance (DeFi) protocol by total value locked (TVL), its newly issued UNI token crashes in the market along with many other DeFi tokens.
UNI traded at USD 4.35, having declined 23.35% over the past 24 hours. And despite the token increasing more than 186% from the launch price of USD 3 last Thursday, to a high of USD 8.6 the day after, the early excitement among users now looks to have cooled off.
Moreover, the losses over the last day also positioned UNI as the day’s worst performing token among the top 50 crypto assets by market capitalization, which is currently closely followed by Aave (LEND) and yearn.finance (YFI).
Despite the fact that UNI token has lost nearly 50% of its value from its high last Friday, the Uniswap protocol continues to gain ground in the DeFi sphere. As announced by DeFi Pulse last Friday, the protocol has now secured the position as the leading DeFi protocol by total value locked (TVL), ahead of its competitors Aave and Curve Finance (CRV).
The reshuffling of the DeFi ranking comes as the total value locked (TVL) in the space as a whole reached a new all-time high yesterday of USD 9.77bn. The record follows a correction in the amount of capital locked in DeFi protocols earlier in September, which had seen the TVL fall from USD 9.6bn on September 2, to a low of USD 6.8bn on September 9.
Along with UNI, LEND, CRV, and several other DeFi tokens, however, the Ethereum network’s native token ETH also faced heavy selling today, falling by 8.1% over the past 24 hours to a price of USD 348.
Meanwhile, bitcoin (BTC) fared better than most DeFi-related tokens, with a 24-hour loss of 3.2% to USD 10,604 as of press time.