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DeFi tokens are on the rise, with double-digit gains in the last week. Less popular DeFi projects with low market capitalisation, such as Enzyme [MLN], Strike [STRK], and Lido DAO token [LDO], have increased their dividends by up to 15% in the last week. Because of the reduction in Bitcoin’s price and prominence, these tokens have grown in popularity. The cryptocurrency rally that ensued as a result of this dip is being spearheaded by DeFi projects.
Since June 2, the TVL has been consistent at $59.3 billion. TVL has fallen in value over the last 30 days, but the recent strong correction has wiped off millions from the entire crypto market capitalisation. In comparison to cryptocurrencies, DeFi recovered faster.
The popular DeFi tokens, LINK, AAVE, SUSHI, CAKE, and YFI, have not yet risen since the price decrease; but, as investment inflow into these projects grows as it tapers in altcoins, a rebound is inevitable.
Rising TVL, trading volume, and active wallet addresses all pointed to a positive summer for DeFi. Despite a huge decline in social volume for DeFi tokens, there remained room for recovery and an upward trend.
Further, LINK, YFI, CAKE, SUSHI, CRV, and AAVE are projected to rebound this week, despite the fact that the daily social volume for these DeFi projects was impacted; in the case of YFI, the volume dropped by more than 30% in a single day.
Given that the high in social volume correlates with a reduction in price, the price may rise this week as a result of the reduction in social volume. The prior peak in social volume resulted in a decline below $38400. YFI was trading at $39000 and was expected to hold this level in the next weeks before rallying to $41000.
In the case of some DeFi projects, daily social volume has reached a local low, and it is expected that the rise, which is presently headed by tokens with low market capitalisation, will be replaced by popular and mainstream DeFi projects with greater market capitalisation.