Why Defi tokens, AAVE, SUSHI, UNI deserve your undivided attention in the current market cycle

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The altcoin season has been a cliche, and DeFi tokens have rallied to the point of leading the most recent alt season. Several times during the current trading cycle, Bitcoin has traded sideways, and altcoins with high market capitalizations, such as ETH and XRP, have surged in response. However, the alt rally has not lasted more than a week.

Altcoins such as Ethereum and XRP have led the rally in past phases of the ongoing bull run. However, the returns from the top ten DeFi coins, like Vesper (32.71%), have a better chance of leading the altcoin rally. Institutional transactions in high market capitalisation tokens have grown.

However, there has been a small inflow of investment in DeFi tokens. Despite this, DeFi tokens have larger, more than double-digit returns on a retail trader’s portfolio. UNI is one of the top ten altcoins, with a weekly rise of 13.41 percent. Though UNI is under selling pressure, other DeFi tokens are currently in the buy zone, trading more than 10% below last week’s bid.

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Tokens such as AAVE, MKR, COMP, SUSHI, and YFI fall under this category. The DeFi Index is a measure of investor optimism and the reversal of a trend in the market rally of top DeFi tokens. The index is currently at 11337.93 and has fallen 15% in the last two weeks.

This means that many DeFi tokens are in the accumulating process, and the ROI on these tokens could reach double digits if Bitcoin trades sideways. There is evidence of declining supply among top tokens such as SUSHI, resulting in a scarcity and increased buying pressure.

After recent market declines (a fall of more than 7% in the last 24 hours), 7.35 million SUSHI were left in consolidated markets yesterday. This is based on data from intotheblock, which is depicted in the map below.

Defi tokens gearing up for another bull run?

Source: Twitter

SUSHI trading volume has increased by 32% in the last 24 hours, indicating that a SUSHI price rebound is expected before the weekend. The decline in supply might also indicate a delayed price recovery, but with the DeFi index’s drop over the last two weeks, the asset is expected to rally, reaching a new ATH before the weekend.

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