Hifi Finance, a decentralized finance (DeFi) protocol based on Ethereum, has experienced significant volatility in the value of its native token over the past week. The token's value peaked at an all-time high of $2.61 before experiencing a drastic 66% drop to $0.88 over the weekend.
The sharp fluctuation in Hifi's value is largely attributed to its recent listings on several cryptocurrency exchanges. On Tuesday, BitMart listed the Hifi token, followed by Poloniex on Thursday. These listings coincided with an increase in the value of the Hifi tokens.
However, Friday's launch of Hifi perpetual contracts on Binance sparked a rapid decrease in value. This development allowed traders to short the asset by up to 20 times. Despite being listed on HTX (previously known as Huobi) on Saturday, the Hifi token could not regain its upward trend.
Data from CoinMarketCap shows that Hifi's trading volume has decreased by 54% in the last 24 hours to $540 million. Similarly, its market capitalization has fallen 27% to $83 million within the same period. Less than two days ago, at its zenith, Hifi's market cap was close to $250 million and its trading volume reached as high as $1.07 billion.
Hifi Finance, formerly known as Mainframe before rebranding in 2021, offers lending for crypto assets and tokenization of real-world assets. The total liquidity on the Hifi Finance lending and borrowing market currently stands at $262,000. Additionally, Sablier, a DeFi protocol acquired by Hifi Finance in 2020, has approximately $4.5 million in total locked assets.
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