The DeFi sector experienced a historic get dumped as its market share fell below 3%. However, historical data shows that such declines often indicate the beginning of a recovery period. Investors are questioning whether there are opportunities in undervalued DeFi tokens.

According to recent data, DeFi's market dominance has fallen to the lowest levels seen in 2021. During this period, while Bitcoin and Ethereum attracted investor interest, DeFi tokens remained in the shadows. However, a similar situation occurred before a significant DeFi surge in 2021.
Especially projects like Chainlink (LINK), Hedera (HBAR), Avalanche (AVAX), Uniswap (UNI), and Aave (AAVE) are maintaining their strong fundamentals despite the price getting dumped. While the market's interest has shifted towards large crypto assets, the current value loss of the tokens may present a accumulation opportunity for long-term investors.
The decline of DeFi's market share below 3% is creating uncertainty in the sector. Concerns regarding AAVE's "fee switch" mechanism have led to discussions of manipulation, while the U.S. Securities and Exchange Commission's withdrawal of its appeal against the court ruling that exempts DeFi platforms from securities laws has somewhat reduced regulatory risks.
However, the market is still cautious. The outflow of investments from Bitcoin ETFs for 17 consecutive days shows that investors are avoiding risk. Nevertheless, it has been observed that the DeFi market has historically experienced a significant recovery after such declines. If this cycle repeats, a new wave of increase may begin in these tokens.
Despite the decrease in market share, DeFi projects continue to take innovative steps. Hemi Labs launched a new mainnet that combines Bitcoin and Ethereum within the same ecosystem, with a total locked value of 440 million dollars (TVL). Converge is preparing to offer KYC and custody solutions targeting institutional investors with an Ethereum-compatible blockchain.
Additionally, the $550 million token sale by the Trump-backed venture World Liberty Finance shows that investor interest has not completely vanished. Although the market share of DeFi has decreased, innovative projects continue to keep the sector active, and this situation paves the way for new opportunities that could gain value in the long term.
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