Median DeFi token return on par with Bitcoin this year

Bitcoin has underperformed 38 top DeFi assets by roughly 15% in 2020 so far ... but that's nothing to worry about.
Bitcoin has underperformed 38 top DeFi assets by roughly 15% in 2020 so far ... but that's nothing to worry about.

Despite a pullback from the meteoric bull market for decentralized finance, the average DeFi token return has vastly outperformed Bitcoin and Ethereum. The median performance is a different story, however.

On Nov. 17, pseudonymous crypto analyst “Ceteris Paribus” shared data with his 12,000 followers compiling the YTD median and average performances of 40 top crypto assets, comprised of 38 top DeFi assets, Bitcoin (BTC) and Ether (ETH). Around 26 of the DeFi assets are currently posting YTD gains.

The analyst found that the median return sits around 148.8%, which is 15.5% above Bitcoin’s 133.3% YTD gain. So, half of DeFi tokens are above that level, and half below. Paribus said it was pretty much even:

“Strong rebound in November so far but unlike summer, median token return has matched BTC, not outperformed.”

However, the 2020 average performance of 428.7% is more than triple Bitcoin’s gain.

As of this writing, DeFi’s top-performing assets for 2020 are Aave (AAVE) with a 4,245% gain, Band (BAND) with 2,466% and Yearn Finance (YFI) with 1,597%. THORChain (RUNE) is the only other DeFi token to post quadruple-figure YTD, with 1,203%.

The sector’s worst-performing assets for the year so far are Curve (CRV), SushiSwap (SUSHI) and Swerve (SWRV), posting losses of 88.7%, 80.1% and 79.9%, respectively.

DeFi assets have produced extreme volatility in recent months, with 10 of 29 DeFi tokens posting gains exceeding 1,000% in August, while CRV was the sole asset to end August in the red.

However, only Gnosis (GNO) and Hegic (HEGIC) were able to post single-digit gains for September through October, while the remaining 34 tokens were at a loss — including five tokens that fell more than 89%.

November has thus far seen comparatively modest volatility, with 32 of 38 tokens gaining to post median and average performances of roughly 20% and 35%, respectively.