• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news DeFi

DeFi “Blue-Chips” Lead Sector Rebound as Smaller Tokens Underperform

Cole Petersen by Cole Petersen
2 months ago
in DeFi
Reading Time: 2min read
DeFi “Blue-Chips” Lead Sector Rebound as Smaller Tokens Underperform
Advertisement
Listen to Article

The DeFi sector has been on the up and up throughout the past few weeks, with the post-Summer downtrend first reversing earlier in early-November when Yearn.finance’s YFI token bottomed out at $7,500 and saw a massive overnight surge up towards $18,000.

From this point forward, the cryptocurrency has been climbing higher every week, showing signs of strength and creating tailwinds for the rest of the market.

YFI wasn’t the only “blue-chip” sector benchmark that reversed its downtrend earlier this month, as many other major tokens rallied in tandem.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

This sector-wide movement was bolstered by the strength seen by Bitcoin, Ethereum, and the rest of the cryptocurrency market.

ETH’s rise has been particularly impactful for smaller DeFi assets that gain most of their trading volume from Uniswap, as their 50/50 pools are denominated in Ethereum.

One investor is now noting that although these higher-beta DeFi assets have been widely expected to outperform the rest of the market, they are lagging far behind the supposed “benchmark” tokens within this sector.

DeFi Market Closely Tracks Ethereum’s Price Action 

Ethereum has been guiding the altcoin market as of late, with its price action largely hinging upon Bitcoin.

Currently, ETH’s bulls and bears are battling to hold the cryptocurrency above $600. The selling pressure seen above this price level has been significant and may continue hampering its price action until Bitcoin can break above its all-time highs.

The DeFi perpetual swap basket on FTX – which tracks the performance of a handful of the top sector-specific projects – is up from its monthly lows of $800, with its current price sitting around $2,400.

This, however, marks a massive decline from its recent highs of $6,000 that were set just a couple of weeks ago. This indicates that investors are uncertain about where this fragment of the market will trend next.

It is important to keep in mind that this gives a general indication of the sector’s performance, as the DEFI-PERP’s exact price is influenced by margin use, funding rates, and other metrics.

Blue-Chips Lead Sector’s Rebound

One prominent investor noted in a recent tweet that the DeFi sector is growing more efficient, with the larger projects outperforming their smaller counterparts.

“Wow, incredible divergence among various DeFi tokens, with the blue-chip ones substantially outperforming since the beginning of the month Markets getting more efficient.”

DeFi Ethereum

Image Courtesy of Su Zhu. Source: TradingView.

Where Bitcoin and Ethereum trend in the mid-term will undoubtedly influence the DeFi sector. Until fresh retail money flows into the market and investors grow keen on seeing multipliers, the larger tokens may continue outperforming the smaller ones.

Featured image from Unsplash.
Charts from TradingView.
Tags: AAVEUSDethbtcethusdyfiusdyfiusdt
TweetShare
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Cole Petersen

Cole Petersen

Cole is a cryptocurrency analyst based in Los Angeles. He studied at the University of California Irvine and has been interested in Bitcoin and the crypto markets since 2013.

Related Posts

COVER

COVER Price Plummets Towards Zero Following Lethal Minting Function Exploit

4 weeks ago
Analyst: SushiSwap Token Price to Hit $9.00 Eventually as Strength Grows

Analyst: SushiSwap Token Price to Hit $9.00 Eventually as Strength Grows

2 months ago
SUSHI, SUSHIUSD, SUSHIBTC, cryptocurrency

SushiSwap Hits Multi-Week High on High Profile Synergies; What’s Next?

2 months ago
Ethereum DeFi Exploiter Returns $50,000 to “Nurse” Affected by $5m Attack

Ethereum DeFi Exploiter Returns $50,000 to “Nurse” Affected by $5m Attack

2 months ago
Bitcoin

Analysts Call for a Second Wave of DeFi Mania as Crypto Investors Reenter Sector

2 months ago
Facebook & Libra’s David Marcus Is Asking About Ethereum DeFi

Facebook & Libra’s David Marcus Is Asking About Ethereum DeFi

3 months ago

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.