Index futures for decentralized finance (DeFi) continue to collapse, erasing all gains since late June, as the sector cools off following a wild summer of speculation.
On derivatives exchange FTX, perpetual futures for their DeFi index have fallen nearly 60% from their September high of $3,500, dropping to prices not seen shortly after the new futures product launched at the end of June.
On Binance, futures for a similar index have plummeted nearly 70% off its Aug. 28 high of $1,190, made the same day when the product started trading. Since its launch, the index has largely only traded downwards, closing every week, except for three, at a loss.
A temporary respite may be near, however, offering investors a chance to recover and reevaluate the market, according to Alex Gedevani, analyst at Delphi Digital and former analyst at Barclay’s. The speed of the ongoing selloff has simply…