Bitcoin runs crypto markets, but DeFi tokens don't follow its lead

Is volume alone telling the whole story? Amid the DeFi frenzy, some of the biggest winners have been DeFi governance tokens.

In this way, DeFi tokens are more comparable to the concept of an IPO than ICO tokens ever were.

After the lockup period of an IPO ends, most investors dump their shares on secondary markets, according to findings from financial services firm UBS. This trend doesn't bode well for any early recipients of DeFi tokens, as they usually HODL. Of course, DeFi is very much in its infancy, so it's too early to draw any concrete comparisons.

"The jury is still out on the valuation fundamentals for DeFi governance tokens. Given the novelty of the space and the many complex factors going into evaluating the fundamental value of a token, the pricing of governance tokens remains highly speculative."A lack of BTC correlation?

DeFi tokens may show eerie correlations with IPOs, but they buck a bigger trend within crypto markets.

While BTC has been trading within a relatively narrow range over the last month or so, DeFi tokens have shown price movements entirely uncorrelated to BTC markets.

All of these points raise some intriguing questions about the future direction of DeFi token markets.

In the notoriously fickle world of crypto investing, it seems a stretch to think that any investors would hold onto DeFi tokens for that long, particularly if their value continues to decline.

All the DeFi tokens in the world won't stop the United States Securities and Exchange Commission or the Financial Crimes Enforcement Network from coming after anyone they believe to be responsible for contravening U.S. regulations, if and when the time comes.

If the worst-case scenario happens, DeFi could go the way of the ICO, rendering DeFi governance tokens worthless as a result.