DeFi yields crumble as Curve, Sushi, and other Ethereum coins crater

In August and September, the decentralized finance space was in a state of frenzy: random food farming strategies were yielding tens of thousands of percent APY while more reputable pools, paying out coins to thousands of users, was generating yields on orders of magnitude higher than bank accounts.

Yields have crumbled over recent weeks at a rapid pace.

The cause: coins that are minted to generate yields, like Curve's DAO Token and SushiSwap's SUSHI, have plunged in value.

DeFi yields crater amid steep Ethereum coin correction.

Over the past few days, leading Ethereum DeFi coins continued their rapid descent to the downside.

On Wednesday alone, top coins in the DeFi space slipped by another 5-20 percent as the market entered a state of capitulation: users on Twitter noted that there was an influx of on-chain shorting enabled by Aave borrowing, along with an increase in spot market selling as evidenced by exchange volumes.

The collapse in yields has resulted in some fears that the allure of DeFi is gone.

Ethereum analysts say that the steep decline in returns is far from the end of yield farming-focused projects, and more broadly, DeFi as a whole.

"Just b/c yields are"dead" for now doesn't mean #DeFi is.

This is a massive opportunity to show that DeFi yields will be higher than CeFi in equilibrium long-term.