DeFi Tokens to Ethereum Market Cap Ratio
This insight takes the DeFi Tokens Market Cap and divides it by Ethereum’s market capitalization. By doing this, it puts into context the size of the DeFi space in comparison to the underlying Ethereum network where most of these are built on top of.
By comparing DeFi tokens’ market cap vs ETH’s, users are able to track their relative performance. This allows users to assess whether DeFi tokens or Ether has been a better investment over the selected time frame.
If the ratio decreases over time, as was the case in September and October 2020, users would have been in general better off holding Ether than DeFi tokens.