DeFi Coins AAVE, RUNE, SNX Hold Up Despite Bitcoin Correction

Nick Chong

1 year ago

2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Decentralized finance (DeFi) coins have undergone an extremely strong recovery from last week’s lows. As of last night, at the highs of the recovery rally, there were a large number of top coins in the space that were up 100% from their lows.

While some of these gains have since been reverted, DeFi is holding up relatively well. Popular coins pertaining to this space including Aave (AAVE), Thorchain’s RUNE, and Synthetix’s Synthetix Network Token (SNX) are up 10% in the past 24 hours despite the drop in the price of Bitcoin.

Bitcoin is down $800 from its local highs and continues to range as it has seemingly formed a correlation with gold an inverse correlation with the U.S. dollar.

DeFi Coins Hold Up

Even after Bitcoin’s rapid flush lower, which would have conventionally caused pain in the altcoin markets, DeFi is up. While BTC is down 2.5% in the past 24 hours, top coins in the space are anywhere from 1-20% higher over that same time frame.

Below is a screenshot from CoinGecko that depicts this trend of strength in coins pertaining to the DeFi ecosystem:

Top ~10 cryptocurrencies in the top 100 by market capitalization over the past day from CoinGecko.

AAVE seems to be pulling away as the best large-cap cryptocurrency of the past week. As the data above shows, it is up 83% in the past seven days alone, having bounced strongly from its local lows.

DeFi coins faced a strong correction when Bitcoin began to rally, though capital has since spread out to include altcoins.

Strong Fundamentals

Strong fundamentals are underpinning growth in the DeFi space.

The total value locked in all DeFi contracts, in fact, just set a new all-time high at $12.5 billion. This is far above the $500 million figure seen closer to the start of the year.

The TVL of the DeFi space has remained consistently high, even amid the correction that was seen over the past two months.

This is largely due to the search for yield in DeFi and in traditional markets, which is forcing investors to keep their capital in pools and other yield farming opportunities to earn returns.

Innovation in the DeFi space also continues at a rapid clip. A number of developers in the space are releasing applications that will expand the reach that this space has in finance.

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.