{"id":43311,"date":"2021-05-27T17:18:48","date_gmt":"2021-05-27T14:18:48","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=43311"},"modified":"2025-08-31T03:04:22","modified_gmt":"2025-08-31T00:04:22","slug":"glassnode-defi-sector-resists-panic-on-may-19","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/glassnode-defi-sector-resists-panic-on-may-19\/","title":{"rendered":"Glassnode: DeFi sector resists panic on May 19"},"content":{"rendered":"<p>The DeFi sector showed resilience during<a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-price-falls-below-35000\"> the May 19 crash<\/a> and extreme gas prices. This manifested in high activity on the <span data-descr=\\\"Decentralized exchanges\\\" class=\\\"old_tooltip\\\">DEX<\/span>, robustness of liquidation and arbitrage mechanisms, and the pegging of stablecoins, according to Glassnode analysts.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">The <a href=\\\"https:\/\/twitter.com\/hashtag\/DeFi?src=hash&#038;ref_src=twsrc%5Etfw\\\">#DeFi<\/a> ecosystem was put to the test last week, as collateral value fell, gas prices spiked and demand for stablecoins increased.<\/p>\n<p>In this piece we analyse the resilience of <a href=\\\"https:\/\/twitter.com\/hashtag\/DeFi?src=hash&#038;ref_src=twsrc%5Etfw\\\">#DeFi<\/a> protocols, and the response of the market to a rapid 50% price mark-down.<a href=\\\"https:\/\/t.co\/npJAymSo62\\\">https:\/\/t.co\/npJAymSo62<\/a><\/p>\n<p>\u2014 glassnode (@glassnode) <a href=\\\"https:\/\/twitter.com\/glassnode\/status\/1397583311833272330?ref_src=twsrc%5Etfw\\\">May 26, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>Prices of major DeFi tokens during this period showed a higher <span data-descr=\\\"reflects asset return volatility relative to index return\\\" class=\\\"old_tooltip\\\">beta<\/span> relative to Ethereum. Nevertheless, during the buyers&#8217; capitulation, this deviation in relative terms did not exceed 15%.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"576\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/1-459-1024x576.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136902\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/1-459-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/1-459-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/1-459-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/1-459-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/1-459.png 1800w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Price dynamics of DeFi tokens from May 15 to May 24. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>The largest declines were in YFI (72%). During the subsequent rebound, price declines from the all-time high in the sample narrowed to 42-56%.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"464\\\" height=\\\"232\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/2-416.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136903\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/2-416.png 464w, https:\/\/u1f987.com\/wp-content\/uploads\/2-416-300x150.png 300w\\\" sizes=\\\"auto, (max-width: 464px) 100vw, 464px\\\" \/><figcaption>Change in DeFi token prices from May 15 to May 24. Data: Glassnode.<br \/><\/figcaption><\/figure>\n<\/div>\n<p>Relative to Bitcoin, Ethereum showed resilience, unlike previous episodes of sharp corrections.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"576\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/3-250-1024x576.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136905\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/3-250-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/3-250-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/3-250-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/3-250-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/3-250.png 1800w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Price dynamics of Bitcoin and Ethereum from May 15 to May 24. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>Total value locked (TVL) in DeFi protocols fell by 42% from peak to trough, while Ethereum price fell by 52%.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"449\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/4-150-1024x449.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136906\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/4-150-1024x449.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/4-150-300x131.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/4-150-768x336.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/4-150-1536x673.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/4-150.png 1904w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Dynamics of TVL and Ethereum price. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>Share of ETH locked in protocols remained near 23%, while the share on exchange balances rose from 11.13% to 11.75%.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\ 576\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/5-92-1024x576.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136907\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/5-92-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/5-92-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/5-92-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/5-92-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/5-92.png 1800w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Dynamics of Ethereum supply on exchange balances and locked in smart contracts. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>On May 19, trading volume on decentralized exchanges reached a record $11.7 billion, of which $5.7 billion was on Uniswap, $2.8 billion on SushiSwap.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"472\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/6-66-1024x472.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136908\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/6-66-1024x472.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/6-66-300x138.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/6-66-768x354.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/6-66-1536x709.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/6-66.png 1866w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Daily volumes on DEX. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>Major stablecoins maintained stable pegs throughout the period.<\/p>\n<p>The USDT\/USD rate ranged from about $0.99 to $1.02, with deviations lasting from seconds to minutes. DAI did not face issues seen in March 2020.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"576\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/7-39-1024x576.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136909\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/7-39-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/7-39-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/7-39-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/7-39-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/7-39.png 1800w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Dynamics of USDT, USDC and DAI. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>On May 19, on-chain value transferred in stablecoins reached a record $52 billion.<\/p>\n<div class=\\\"wp-block-image\\\">\n<figure class=\\\"aligncenter size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"576\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/8-32-1024x576.png\\\" alt=\\\"Glassnode: DeFi sector did not panic on May 19\\\" class=\\\"wp-image-136910\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/8-32-1024x576.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/8-32-300x169.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/8-32-768x432.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/8-32-1536x864.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/8-32.png 1800w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Dynamics of on-chain value transferred in stablecoins. Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n<p>Analysts at Glassnode concluded that the latest drop <a href=\"https:\/\/u1f987.com\/en\/news\/glassnode-long-term-investors-ramp-up-purchases-during-bitcoins-current-correction\">caused<\/a> panicky selling by short-term investors, while long-term buyers bought the dip.<\/p>\n<p>Earlier ForkLog reported <a href=\"https:\/\/u1f987.com\/en\/news\/monthly-trading-volume-on-ethereums-decentralized-exchanges-tops-115-billion\">record trading volumes<\/a> on DEX for May so far.<\/p>\n<p> Subscribe to ForkLog&#8217;s YouTube channel! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The DeFi sector showed resilience during the May 19 crash and extreme gas prices. This manifested in high activity on the DEX, robustness of liquidation and arbitrage mechanisms, and the pegging of stablecoins, according to Glassnode analysts.<\/p>\n","protected":false},"author":1,"featured_media":43312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1093,46,1273,1145,807],"class_list":["post-43311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-defi","tag-ethereum","tag-glassnode","tag-market-analysis","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=43311"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43311\/revisions"}],"predecessor-version":[{"id":43313,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/43311\/revisions\/43313"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/43312"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=43311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=43311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=43311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}