DeFi dominance, which measures the DeFi market cap as a percentage of the global cryptocurrency market cap, has fallen to a three-year low.
After last week's market-wide sell-off and subsequent relief rally, the DeFi index fell from 3.82% last Monday to a low of 2.84% last Friday, marking the lowest level of DeFi dominance since early January 2021.
Since September 2022, when DeFi dominance was around 4.8%, this figure has gradually trended downward, with occasional small rebounds. By the beginning of 2024, this indicator had fallen to 4.47%.
In 2024, sectors such as Meme coins outperformed the market, and the launch of Bitcoin and Ethereum spot ETFs also attracted institutional interest in these assets. As a result, most DeFi tokens are in a state of uncertainty, resulting in a 29% decline in DeFi dominance so far this year, and market participants have little interest in the performance of most DeFi tokens. (The Block)