Summary
- It was reported that DeFi loan demand is plummeting due to deleveraging.
- It was stated that investors are repaying loans and unwinding positions due to the spread of risk-off sentiment.
- It was explained that stablecoin yields have fallen from 18% in December last year to 2.8% currently.
According to CoinDesk, a cryptocurrency-focused media outlet, on the 8th (local time), it has been observed that DeFi loan demand is plummeting as traders engage in deleveraging amid market turmoil.
The media stated, "As cryptocurrency price volatility increases, a risk-off sentiment is spreading in the market," adding, "Investors are repaying loans and unwinding positions, leading to a decrease in DeFi loan demand."
It continued, "On the other hand, as the funds deposited in lending protocols maintain a certain level, stablecoin yields are decreasing," explaining, "In fact, the yield on dollar-based stablecoins has significantly dropped to 2.8% from 18% in December last year."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
