The DeFi Landscape: Gains and Pains
In 2020, decentralized finance (DeFi) tokens have been on a wild ride, leaving traditional cryptocurrencies like Bitcoin and Ethereum in their dust—well, most of them. With average returns that would make any investor do a little victory dance, DeFi splashed onto the scene with a dramatic flair. But wait, before we get lost in the glitz and glam, let’s take a look at the median performance flip side.
Average vs Median: What’s the Difference?
Ceteris Paribus, a pseudonymous analyst with a flair for numbers and a following of over 12,000, did some heavy lifting and crunched the YTD performance data across 40 crypto assets. Spoiler alert: There’s a difference between average and median that can make or break interpretations of the data.
- Average Performance: A jaw-dropping average gain of 428.7% for DeFi tokens.
- Median Performance: A more modest, yet respectable median return of 148.8%, sitting slightly above Bitcoin’s 133.3%.
So while the party looks good when averaged together, half of DeFi tokens are trailing behind. Murmurs in the crypto world suggest that investors should take that into account when shuffling through their portfolios.
Top Performers: Stars of the DeFi Show
Time to shine a light on the shining stars of the DeFi universe! Here are the heavyweights smashing the charts with their sky-high returns:
- Aave (AAVE): A staggering 4,245% gain!
- Band (BAND): Not too shabby with 2,466%!
- Yearn Finance (YFI): Making waves with 1,597%!
And let’s not forget THORChain (RUNE) who also made it onto the quadruple-figure list with a respectable 1,203%. The DeFi party is clearly in full swing for these top performers!
The Not-So-Hot Mess: Worst Performers
Now, we can’t just celebrate the winners without giving the underdogs a nod. Here are the DeFi assets that were not quite at the top of their game:
- Curve (CRV): A tumultuous loss of 88.7%!
- SushiSwap (SUSHI): Dishin’ out an 80.1% loss!
- Swerve (SWRV): Almost making a meal of losses with 79.9%!
These assets remind us that not every DeFi project can ride the wave; some are still figuring out how to stay afloat!
A Volatile Future: What Lies Ahead?
It’s been a tempestuous few months in the realm of decentralized finance, with many tokens showing extreme volatility. August alone saw 10 of 29 DeFi tokens making gains over 1,000%. But the storm of September and October brought heavy rains, leaving nearly all tokens—but Gnosis (GNO) and Hegic (HEGIC)—soggy with losses.
November, on the other hand, is gracing the space with comparatively gentle trends, where 32 of the 38 tokens are back on the upswing, enjoying gains with median and average performances of 20% and 35%, respectively.
