Defi Tokens Together with Aave, Uniswap, Compound Trip ‘Musk Impact’

Defi Tokens Including Aave, Uniswap, Compound Ride 'Musk Effect'


Briefly

  • The worth of Aave, Uniswap, and Compound has elevated by roughly 9% up to now 24 hours. 
  • All three tokens have hit native highs by way of correlation in opposition to the worth of Bitcoin too. 

Spurred by but one other Elon Musk tweet, the worth of Bitcoin hit a 3-week excessive at $39,813 on Monday morning, giving a large increase to the general crypto market. 

The mixed worth of all cryptocurrencies is presently $1.67 trillion, with the tokens representing the decentralized finance (DeFi) sector being among the many largest gainers. 


Aave (AAVE), the native token of the eponymous lending protocol, is up by 10% up to now day, surpassing the $319 mark earlier immediately. With a market cap of simply above $4 billion, AAVE is presently the fourth largest DeFi asset, in keeping with CoinGecko

Earlier this month, it reached the primary spot in whole worth locked (TVL) in all the sector. 

Whole Worth Locked (TVL) in Aave. Supply: DeFi Pulse.

Based on information from DeFi Pulse, this worth is as a lot as $13.04 billion as of immediately or greater than 15% of the general $60 billion locked in DeFi protocols. The runner-up Maker has $8.23 billion in TVL. 

With a market cap of $11.84 billion, Uniswap (UNI) is the tenth-largest crypto asset on the planet and the biggest within the DeFi area. The governance token for the Ethereum-based decentralized change (DEX) has skyrocketed above $22.91. Nonetheless, this transfer remains to be about 50% under an all-time excessive of $44.29 recorded on Could 3.

COMP, the governance token of the Compound Protocol, reached $325.77 earlier immediately. Nonetheless, as soon as a dominant pressure within the DeFi area, presently COMP is simply the fourth largest DeFi token and the Sixtieth-largest crypto asset by market cap ($1.7 billion). 

Whereas a number of different DeFi tokens, together with Chainlink (+10.4%) and ThorChain (+13.4%), are faring effectively too, it’s attention-grabbing to look at that the most recent transfer has additionally introduced an unusually excessive correlation of AAVE, UNI, and COMP to the worth of Bitcoin.

Most altcoins–with few exceptions–are inclined to observe the worth actions of Bitcoin, however this has not all the time been the case with DeFi tokens, which frequently observe their very own patterns. Previously, some consultants even suggested that the costs of DeFi tokens would by no means find yourself following BTC. 

Nonetheless, in keeping with information from CoinMetrics, the correlation coefficient of AAVE to BTC, which simply three months in the past was under 0.1, has soared to a neighborhood excessive above 0.6. Likewise, the correlation coefficient of COMP to BTC has jumped from 0.3 to 0.8 over the identical time frame, whereas the correlation between UNI and BTC hit an all-time excessive at 0.68–a powerful progress from 0.1 on the finish of March. 

CoinMetrics chart with rising red line.
Correlation between Uniswap (UNI) and Bitcoin (BTC). Source: CoinMetrics

Regardless of the bullish rise for these tokens, with Elon Musk tweeting about Bitcoin once more, there may very well be extra sudden worth actions forward–one thing which will additionally affect how DeFi tokens correlate to BTC.

Disclaimer

The views and opinions expressed by the writer are for informational functions solely and don’t represent monetary, funding, or different recommendation.



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