Timeline of the Decline
November 2021
$1415.00
All-Time High - Peak euphoria
January 2022
$500.00
OHM forks saturate market, diluting value
June 2022
$20.00
DeFi 2.0 narrative collapses
Current
$12.00
Post-collapse trading
What Went Wrong
-
Unsustainable APY Ponzinomics
7,000%+ APY was mathematically impossible to sustain. The model relied entirely on new buyers providing exit liquidity for early stakers.
-
OHM Fork Explosion
Dozens of OHM forks (TIME, KLIMA, etc.) diluted the entire DeFi 2.0 narrative, fragmenting liquidity and attention.
-
(3,3) Coordination Failure
The game theory relied on everyone staking. When confidence broke, the optimal strategy became selling, creating a death spiral.