YFI, AAVE, COMP plunge 10% — 3 reasons DeFi is seeing a huge correction
DeFi giants YFI, AAVE, and COMP plummet by over 10% within 20 hours as the market pulls back on Bitcoin and Ether uncertainty. Major decentralized finance (DeFi) tokens Yearn.finance (YFI), AAVE and Compound (COMP) plunged steeply in the last 24 hours. The three DeFi tokens, which are valued well over $500 million, declined by over 10% on the day.Yearn.finance, AAVE, COMP 15-minute chart (Binance). Source: TradingView.comThree reasons why DeFi-related cryptocurrencies pulled back particularly hard are low volume, the declining Ether (ETH) price, and the uncertainty around Bitcoin....
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An analyst expects DeFi tokens to mimic bitcoin's 2017 bull run this year.
As Ethereum rallied to new highs, the total value locked in multiple DeFi platforms surged above $10 billion, lifting MKR, AAVE and COMP toward new all-time highs. Analyzing the activity on lending platforms can sometimes be used as a barometer for measuring the sentiment of the cryptocurrency market as a higher number of collateral-backed loans may signal that traders are eager to trade a rising market. The month of April saw the total value locked on Maker (MKR), Aave (AAVE) and Compound (COMP) climb to new highs alongside rising token values and trading volumes. MKR/USDT vs AAVE/USDT vs....
The DeFi market has corrected hard as Bitcoin dropped below $40,000, but analysts say a recovery is likely. The decentralized finance or DeFi market saw a steep correction over the last 12 hours as Bitcoin (BTC) was unable to break the $41,000 level.Meanwhile, analysts say that the profits from major DeFi tokens are flowing back into Bitcoin, even though the DeFi market is still lagging behind despite BTC’s recovery over the past week.1-hour candle DeFi index (Binance). Source: TradingView.comSo what’s next for the DeFi market?Both major bluechip DeFi tokens and small market cap....
Crypto prices are down across the board but a surge in DeFi sector growth appears to be pushing Compound’s COMP token higher. The price of COMP, the governance token of the decentralized finance (DeFi) giant Compound, has been surging while the wider crypto market has entered a correction. Despite the ongoing cryptocurrency market slump, the token has rallied 56% in the past week.COMP/USDT 4-hour chart. Source: TradingView.comUnusually low funding rate and spot market accumulationThere are various potential reasons behind the sudden rally of COMP. Traders have pinpointed the unusual market....
Aave’s TVL has soared past $20 billion, with one-third of capital coming from its deployment on layer-two, Polygon. Aave has surged to the top of the DeFi ranking by total value locked (TVL) amid its recent embrace of layer-two for scaling.According to Aave’s website, the v2 and Polygon deployments of the popular crypto-powered money market protocol currently represent more than $20 billion in locked capital, holding more than $12.6 billion and $7.8 billion in the respective versions.According to DeFi Llama, Aave v2 is currently the largest decentralized protocol by assets locked, while....