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With the price of ETH at $3900, the altcoin has been steadily setting new highs since the beginning of 2021. Top DeFi tokens are being collected in tandem with the market surge of ETH. Popular DeFi tokens have been consolidating and making a comeback over the last two weeks.
In the last week, Chainlink [LINK], Yearn Finance [YFI], and Wanchain [WAN] have all posted double-digit gains. Due to high short-term factors, there is an uptick in the number of retail traders who have begun collecting DeFi tokens. More crypto natives may have begun to migrate from ETH and BTC to DeFi.
Aside from the rise in the number of DeFi’s unique addresses, TVL in most ventures and WBTC amount have risen since the beginning of 2021.
According to the above table, DeFi’s TVL is almost three times what it was in 2021. Because of the recent price increases, new retail traders have begun to accumulate DeFi tokens. Furthermore, retail traders have pursued DeFi’s market surge in the same way as they have followed the rally of top memecoins.
Retail traders have begun to use some of the services available on L2s, which correlates to quiet accumulation, but selling pressure on ETH remains low. After nearly a week of consolidation and many buying openings, BAKE, RUNE, CAKE, and MKR have begun to rally. According to data from Lunarcrush.com, the social volume for BAKE has reached a high.
According to the above market map, the social volume peaked on May 11, 2021, and the DeFi project remains undervalued. BAKE, on the other hand, is expected to rally in reaction to this metric. A similar growth spurt can be seen on the charts of RUNE, CAKE, and MKR.
After a decline in Maker’s price, trade volume increased by nearly 20%. This may indicate increased selling pressure, but the altcoin is expected to rebound quickly.
At the market price of $4898.19, this puts it in the purchase zone. As compared to top altcoins, the recovery from a price drop for DeFi projects is relatively fast. The market capitalisation and number of consumers are the distinguishing factors. Aside from ROI and popularity, the primary explanation for traders’ accumulation of BAKE, RUNE, CAKE, and MKR is social scale.