Each company in the crypto ecosystem has its own explanation for why it’s faltering.

One shiny premise of DeFi, or decentralized finance—a catch-all term for cryptocurrencies and blockchain projects related to the exchange of value—is that by spreading out and automating operations, and removing power from middlemen like banks, it can offer a system more resilient to global forces, able to survive events like war and economic downturns that pummel traditional markets. Some industry insiders have even suggested crypto could be a good investing bet to ride out a potential recession.

Now in our current precarious financial climate, with the traditional market slipping dramatically and Big Tech stocks plummeting, that theory of resilience is getting a real-life road test. And the results are not great.

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