DeFi “Blue Chips” Aave and Synthetix Surge 15% as Buying Floods In
Earlier this week, the decentralized finance (DeFi) market was in a state of capitulation. Top coins pertaining to this space were plunging by dozens of percent over the span of a day or two, including “blue chip” names like Yearn.finance’s YFI, Synthetix Network Token (SNX), and many others.
From their highs set in the summer to these lows, the average DeFi coin had dropped by approximately 75%. This drop came after an exponential rally that netted many early DeFi adopters millions, especially those that bought early in coins like SNX and YFI.
Buyers finally stepped into the DeFi market over the past two days, with coins in the space rallying strongly from their recent lows.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Top DeFi Coins Bounce Strongly Off Bottom
Top decentralized finance coins have rallied strongly since the bottoms seen earlier this week.
In the past 24 hours alone, Aave (AAVE), Synthetix Network Token, Uniswap (UNI), and other names have gained around 15% against the U.S. dollar. This makes them some of the best-performing crypto-assets in the top 100 by market capitalization.
The rally in these coins comes in the face of a strong drop in the price of Bitcoin, which is now down 4.5% in the past 24 hours. Ethereum, for further context, has shed 6% in the past 24 hours.
Not all DeFi coins are benefiting from this rally, though. Smaller names such as REN, the token of the Ren Network, and others have actually dropped in excess of 10% in the past day.
The market seems to be focusing its capital on DeFi “blue chips,” widely regarded as YFI, AAVE, SNX, and UNI.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
The Drop May Not Be Done Just Yet
Not everyone is convinced the DeFi bottom is in. One crypto-asset analyst, formerly the head of product at Messari, commented in October:
“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see a 80-90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”
There remain some signs indicating that the recent rally may just be an overextended short squeeze and that there may be further selling pressure before a true bottom.
If Bitcoin continues to suck all the air out of the room by being the best-performing crypto-asset, this may be the case for DeFi.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: aaveusd, aavebtc, aaveeth, snxusd, snxbtc, snxeth Charts from TradingView.com DeFi "Blue Chips" Aave and Synthetix Surge 15% as Buying Floods In