These Factors Show DeFi is Bullish Despite 50%+ Drop Seen by Many Crypto Tokens

These Factors Show DeFi is Bullish Despite 50%+ Drop Seen by Many Crypto Tokens

The DeFi sector has been struck hard by the recent downturn seen across the aggregated crypto market, but it has not been able to match the momentum seen by Bitcoin and Ethereum as a result of their recent rallies. DeFi tokens – due to their immense volatility – are considered to be “high beta,” which […]


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Yearn.finance (YFI) gains 36% as DeFi tokens follow Bitcoin’s bullish trend

Yearn.finance (YFI) price surged by 58% in the last few days as three key factors suggest investors expect further upside. In the past 72 hours, Yearn.finance (YFI) surged by 58% after dropping to as low as $12,260 at a few exchanges. Three factors that may have catalyzed the sharp rebound are: YFI had become deeply oversold, lead developer Andre Cronje’s deep commitment to the project and the ever expanding use cases for YFI within a large ecosystem.YFI was deeply oversoldOver the past month DeFi tokens endured a brutal correction which saw the value of many DeFi tokens drop by 40%-70%.....

DeFi tokens are oversold but revenue and TVL show traders expect a bounce

The pullback in the value of Yearn.finance and Aave signals that the DeFi market may be oversold but increasing revenues of the top projects suggests otherwise. Over the last month the crypto market has seen a significant amount of volatility as a 6-month altcoin bull market abruptly came to an end with the most recent Bitcoin (BTC) price rejection at $12,000.At the same time, the DeFi sector saw an amazing run as the total value locked in DeFi platforms surged above $10 billion but at the time of writing the sector is in the midst of a mild correction.DeFi index daily, weekly, monthly....

Zero-sum game: DeFi declines while Bitcoin booms

While Bitcoin’s value has increased by more than one-third since September, DeFi tokens have floundered. Are the two things related? The co-founder of crypto data aggregator Markets Science, Twitter-user ‘Bitdealer,’ has shared a chart  indicating negative correlations between 11 top DeFi tokens and BTC over the past 45 days to Nov.1, with AAVE showing neutral correlation and UNI showing confluence if less than 0.1.Seven of 13 DeFi tokens were also found to have negative correlations with Ethereum (ETH), despite Ethereum powering much of the DeFi ecosystem.With many decentralized finance....

DeFi craze propels Uniswap monthly volume to $15.3B, surpassing Coinbase

Uniswap processed $15.3 billion in monthly volume in September, outpacing Coinbase and signalling that DeFi is here to stay. Data from Dune Analytics shows that in the month of September Uniswap decentralized exchange processed $15.371 billion in volume. In the same period, reports indicate that Coinbase processed $13.6 billion.Monthly decentralized exchange volume. Source: Dune AnalyticsThe significant spike in Uniswap’s volume can be attributed to two major factors. First, the explosive growth of decentralized finance (DeFi) and yield farming of governance tokens caused decentralized....

DeFi indexes crash despite strong fundamentals

Binance Futures’ DeFi Composite Index has lost half of its value since launching, while TokenSets’ DeFi Pulse Index is down by one-third. On August 28, Binance Futures launched its DeFi Composite Index, a basket of DeFi tokens that initially comprised 27% Chainlink (LINK) and 11% Aave (LEND) alongside nine other prominent DeFi tokens that made up between 6% and 9.5% of the index each. Updated weekly, the index now tracks 19 different crypto assets.However the Binance Futures’ DeFi index has dropped more than 50% from an all-time high of $1,189 on its first day of trading, with the basket....