DeFi: sharp decrease in collateral locked in lending
DeFi: sharp decrease in collateral locked in lending

DeFi: sharp decrease in collateral locked in lending

By Federico Izzi - 23 Sep 2020

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The tensions of the last few days and the fall in prices trigger the coverage of loans collateralized in smart contracts and so in the last few hours, there has been a sharp contraction in the collateral locked for lending and operations in decentralized finance (DeFi). 

DeFiPulse 20200923

ETH fell from 8 to just over 5 million, as did tokenized BTC from 174,000 registered on September 18th to just over 117,000 in the last few hours. 

Meanwhile, a possible bug in the data provided to the DeFiPulse platform has plunged Maker’s TVL to below $18 million, down from yesterday’s $1.3 billion, which is affecting the total collateral locked in DeFi, which is now below $8.5 billion.        

coin360 20200923

Overall, today shows a balance between positive and negative signs, with a slight prevalence of positive signs among the big names. 

Scrolling the ranking from the top, the first red sign is that of Chainlink (LINK) with a -8%, among the worst falls of the day, continuing the trend downwards that began in mid-August. From the historical absolute highs of 20 dollars reached on August 16th, the value has lost more than 60% to date, revising the 8 dollar price at the beginning of August. 

LINK 20200923

On the opposite side, the best on the top step of the podium is OmiseGo (OMG), with +20% celebrating the choice of rebranding with the new OMG Network. 

Arweave (AR) follows with +11%, entering the top hundred for the first time, and Hyperion (HYN) with +10%, which continues to remain at the mercy of speculation with double-digit swings on both sides.

Total capitalization manages to remain above $330 billion with a further recovery of Bitcoin dominance rising to 58.5%.

BTC 20200923
Bitcoin chart by Tradingview

Bitcoin (BTC)

The 10,500 USD area continues to remain a crucial level in the short term. In the last few hours, the 10,800 level, considered by derivatives operators to be the first one to overcome in order to give gasoline back to the bullish force, has been strengthened. 

The protection of the area 9950-10000 rises to the lowest level. These are the levels to be monitored in the next few hours to assess the most likely trend in the coming days.

ETH 20200923
Ethereum chart by Tradingview

Ethereum (ETH)

The failure to exceed USD 390, which failed last week, highlighted the weak purchasing power. In the last few hours, the return to the area 340 USD raises the defences of the bulls. 

In the event of a break, there would be room to test the USD 305-300, where in the last few hours the Put options have increased in defence of this medium-long term support, which coincides with the passing of the bullish trendline that combines the rising lows since mid-March. 


Federico Izzi

Financial analyst and independent #trader – S.I.A.T. & partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".

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