Binance DeFi Composite Index Plunges Down 50% on Its First Month

The world’s largest digital currency exchange by trading volume Binance’s DeFi Composite Index has not shown good performance in the previous month. In its first month, the cryptocurrency exchange’s DeFi Composite Index has plunged down by 50 percent. DeFi Composite Index trades under the symbol of DEFIUSDT.

When this index represented as DEFIUSDT was launched by the Binance exchange in the month of August, its price value surged high to reach a peak value at around 1189 USDT in its beginning days. However, after reaching its high value, this index has been trading in a downward direction since that time. Reportedly, it is trading down by almost 50% within the duration of more than one month. Currently, the value of DEFIUSDT is standing at around 530 USDT.

The decentralized finance (DeFi) industry has been on a significant rise throughout the year 2020 so far. However, there are some famous DeFi coins that have shown a downward performance in recent times. One of them is the SushiSwap protocol’s native token SUSHI. This governance token started the month of September by trading at around $5. However, its price value has posted a drop of approximately 82 percent and is currently trading around $0.90. YF Link’s YFL token has also tumbled in the previous month as its price value has dropped by 65%. The price of YFL has decreased down from $1,000 to $350.

These are one of the popular tokens in the community and they are not even included in the basket of the DeFi Composite index of Binance. Despite the fact that those coins that have shown potential losses are not included in its basket, the Binance’s DeFi index is trading down at the moment.

DeFi Composite Index was the first index that was launched by the top cryptocurrency exchange Binance’s futures platform in the ending days of the month of August this year. It aims at tracking “the market performance of a basket decentralized finance (DEFI) protocol tokens” which are already listed on the trading platform of the Binance exchange.