Share this article
DeFi Technologies Stock Sell-Off Is 'Attractive Buying Opportunity,' Benchmark Says
The stock lost nearly half of its value earlier this week following the tumble in altcoins and after the publication of a negative opinion piece in a crypto newsletter, the report said.
Updated Jun 20, 2024, 2:52 p.m. Published Jun 20, 2024, 2:24 p.m.
- 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.
The sell-off in DeFi Technologies’ (DEFI) stock looks overdone, and the shares now offer an attractive buying opportunity, Wall Street broker Benchmark said in a research report on Thursday, reiterating its buy rating.
Shares of the cryptocurrency exchange-traded product issuer (ETP), plummeted in recent days following steep declines in altcoins and a negative opinion piece in a crypto newsletter.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Benchmark's analyst Mark Palmer wrote that the stock had gained more than 330% since the beginning of May; it then lost almost half of its value over two days before recovering much of that loss yesterday afternoon.
Most of the ETPs that DeFi offers are altcoin focused, and the slump in these tokens earlier in the week had a negative impact on the share price, Palmer said.
The pullback might be partially due to traders taking some profit off the table after the recent outsized rally, but the sell-off appears overdone, and the stock’s significant repricing offers an “attractive buying opportunity,” the report added.
Palmer reiterated his buy rating on the stock and a C$3 price target. The shares slipped as much as 17% in early trading on Thursday to around C$1.93 before rebounding near C$2, according to TradingView data.
“Volatility in the price of altcoins should not surprise anyone who has even a casual understanding of the dynamics of the crypto market,” Palmer wrote, adding that some weakness in the stock price due to the sell-off in these tokens was understandable.
DeFi has responded to the negative article published by CoinSnacks, describing it as a “misleading short and distort report,” the note added.
Read more: Bitcoin, Crypto-Related Stocks Are Ripe for Institutional Adoption: Bernstein
More For You
L1 tokens broadly underperformed in 2025 despite a backdrop of regulatory and institutional wins. Explore the key trends defining ten major blockchains below.
What to know:
2025 was defined by a stark divergence: structural progress collided with stagnant price action. Institutional milestones were reached and TVL increased across most major ecosystems, yet the majority of large-cap Layer-1 tokens finished the year with negative or flat returns.
This report analyzes the structural decoupling between network usage and token performance. We examine 10 major blockchain ecosystems, exploring protocol versus application revenues, key ecosystem narratives, mechanics driving institutional adoption, and the trends to watch as we head into 2026.
More For You
Bitcoin heads for its worst Q4 since 2018 as traders see further fatigue
Data from CoinGlass shows bitcoin is down more than 22% so far in the fourth quarter, making 2025 one of the weakest year-end periods outside of major bear markets.
What to know:
- Bitcoin's price is nearing $90,000, offering a short-term boost to the crypto market, but analysts remain cautious about a significant recovery.
- The total crypto market capitalization has surpassed $3 trillion, yet analysts warn that the rebound may be driven by exhaustion rather than renewed confidence.
- Bitcoin remains about 30% below its 2025 peak, with the market still vulnerable to sharp reversals, particularly during U.S. trading hours.
Top Stories
