Skip to main content

Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump

Top coins in the decentralized finance (DeFi) space such as Uniswap’s UNI and AAVE have slipped lower even as Bitcoin inches higher. Most top DeFi coins have dropped approximately five percent in the past 24 hours as per CoinGecko while Bitcoin has gained over 2%. The leading cryptocurrency briefly traded above the pivotal $14,000 resistance level today but has since dropped due to large sell orders in the $14,000 range.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Strong Fundamentals Contadict Drop in Coins Such Uniswap, Aave, & More

The strong decline in the coins of top DeFi players such as Uniswap, Aave, Synthetix, and Yearn.finance is contradicted by fundamentals. The fundamentals of the decentralized finance space have only strengthened over recent weeks and months, confusing investors in the space.

Head of DTC Capital Spencer Noon noted that while top coins are down by over 60% from their highs, the “most important indicators” of the health of DeFi are pushing new all-time highs:

“Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators… Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing… And yes, I believe burnout played a major factor in the recent DeFi drawdown. Farmers spent 3 months making serious gains but with barely any sleep. When the market naturally corrected, anecdotally many of my farmer friends decided to hit the sidelines out of sheer exhaustion.””

This was echoed by analysts like Jack Purdy of Messari. On-chain trends show that a large amount of capital continues to enter DeFi contracts to be used in the ecosystem.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

More Losses to Come

Despite this, some fear that more losses are to come for this market due to the losses being seen in Uniswap, Aave, Synthetix, and Yearn.finance.

Qiao Wang, a prominent crypto-asset analyst, recently commented on the matter:

“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 an 80–90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”

He explained that due to the weak performances of top DeFi tokens, other assets pertaining to the space will drop by affinity.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: uniusd, unibtc, unieth, aaveusd, aavebtc, aaveeth, snxusd, snxeth
Charts from TradingView.com
Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump


from NewsBTC https://ift.tt/2HIjUzF
via IFTTT
Labels:

Comments

Post a Comment

Any questions, Please.

Popular posts from this blog

How to play and earn in CryptoKitties

CryptoKitties is a blockchain-based game where players can buy, sell and breed digital cats with unique attributes. Reminiscent of Tamagotchi and Pokémon, the wildly popular digital pets and creatures of the 1990s, CryptoKitties is a blockchain-based game where players can collect, trade and breed digital virtual cats. CryptoKitties was the first Ethereum-based game, and its popularity underscored many of the network’s scaling issues. This digital cat-breeding blockchain game caused quite a bit of congestion on the Ethereum blockchain, peaking in 2020. However, the game’s creators were able to address these issues. What is CryptoKitties? Launched in 2017, CryptoKitties was built by Dapper Labs, the company that uses blockchain technology to bring nonfungible tokens (NFTs) and new forms of digital engagement to fans around the world. CryptoKitties is also considered one of the world’s first-ever blockchain games. In the game, each one of the digital collectible cats possesses a
Post a Comment
Read more

Bitcoin dominance falls under 40%

While Bitcoin critics claim this means that BTC is losing its first-mover competitive advantage, others are anticipating the “altcoin season” is just around the corner, or might even be already underway. Bitcoin’s market dominance has continued to fall, bottoming out below 40% this week. That’s very close to the all-time low of 36.7% in Jan 2018 according to data from Tradingview. Bitcoin ( BTC ) market dominance refers to the ratio between BTC’s market cap and the total crypto market cap. It's not the first time dominance has dipped in 2021. Back in May, Cointelegraph reported that BTC had dipped to represent just 40.3% of the combined crypto asset capitalization, according to Coinmarketcap, and it neared the same level again in September.  Bitcoin critic and Europac chairman Peter Schiff tweeted about the event on Dec 29th, saying that it’s indicative that BTC is “losing its first-mover competitive advantage.” With over 16,000 alternative cryptos to choose from Bitcoin
Post a Comment
Read more

Five Bitcoin Price Charts Analyzing The Dramatic Q1 2022 Conclusion

There are only hours remaining until the Q1 2022 close in Bitcoin price action. With the important quarterly candle set to close tonight, let’s look at what technicals might say about the direction of the next quarter. Q1 2022 Comes To A Close For Bitcoin The first quarter of a year, often sets the tone for the year to come. In investments, a poor Q1 performance is indicative of a bad year ahead. Considering the fact that Bitcoin price is now above $45,000 after touching $32,000 this quarter, it is tough to say the performance has been “poor” by anything other than crypto standards. Related Reading | Bitcoin Weekly Momentum Flips Bullish For First Time In 2022 The cryptocurrency has recovered nearly 40% from the low, leaving a long wick behind. Such a long wick suggests that before the quarter came to a close, buyers stepped up in a major way. Buyers were able to step up in a larger capacity in Q1 2022 than bears were able to in the final quarter of last year. The bearish wick to cl
Post a Comment
Read more