- Benchmark said the sell-off in altcoins triggered the decline in DeFi Technologies’ stock, and the weakness was further compounded by the publication of a negative opinion piece.
- The broker reiterated its buy rating and C$3 price target.
As a cryptocurrency market analyst, I’ve observed a significant downturn in the share prices of cryptocurrency exchange-traded product issuers (ETPs) over the past few days. This decline can be attributed to steep falls in altcoin values and a negative opinion piece published in a reputable crypto newsletter.
Mark Palmer, an analyst at Benchmark, reported that the stock had experienced a significant gain of over 330% from its starting point in early May. However, it suffered a substantial setback, shedding nearly half of its newly-gained value in just two days. Later in the day yesterday, the stock regained some of those losses.
The majority of Exchange-Traded Products (ETPs) in Decentralized Finance (DeFi) primarily invest in altcoins. A downturn in the value of these tokens during the previous week resulted in a decrease in the ETPs’ stock prices, according to Palmer.
One potential explanation is that traders may have sold some of their holdings following the substantial market surge, contributing to the recent dip. However, the stock’s steep decline seems excessive, making it a potentially advantageous moment for investors to purchase at a discounted price.
Palmer maintained his recommendation to purchase the stock with a predicted value of C$3. On Thursday morning, the shares experienced a dip as low as C$1.93 on TradingView, but later recovered to approximately C$2.
As a market analyst, I would explain that the unpredictability in the cost of altcoins should not come as a shock to anyone with a rudimentary grasp of the crypto market’s workings. The recent downturn in their stock prices, triggered by sell-offs, is a reasonable response to this volatility.
In response to the critical article about DeFi published by CoinSnacks, they characterize it as a “misleading and overly simplified piece” in their statement.
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2024-06-20 17:46