28 January 2021
As the overall crypto market sinks over 5% in a deep marketwide correction, the DeFi Crypto space has defied momentum with some top DeFi Tokens registering a solid market rally.
As reported earlier this week, the overall crypto DeFi market has rallied significantly over the last month gaining more than 100% since the beginning of 2021.
Over the last week, the Uniswap token price has gained more than 50% to hit its new all-time high above $15. At press time, the UNI DeFi token is trading at a price of $14.76 with its market cap moving past $4.20 billion.
The UniSwap token price surge comes amid strong whale accumulation. As per Santiment, UniSwap whale holders with addresses holding more than 100K UNI has surged to 237 from 204 previously.
The overall DeFi crypto market has registered a strong rally so far in 2021. While the year-to-date DeFi market growth stands at over 130%, it is more than 160% on a 30-day chart.
In addition to UniSwap, some of the other top-performing DeFi tokens are AAVE, Maker (MKR), Synthetix (SNX), and SushiSwap (SUSHI). All of these DeFi crypto tokens have registered more than 100% gains so far in 2021. The Maker (MKR) protocol has the highest value staked with the total value staked (TVL) standing at over $4 billion.
Just as the DeFi space continues to evolve, the Ethereum blockchain network continues to face growing competition from peers for hosting decentralized finance (DeFi) applications. For e.g. Polkadot and Chainlink networks are registering big gains as Ethereum faces the challenges of high fees due to increased network transactions.
Both Polkadot (DOT) and Chainlink (LINK) have recently surged massively to make it among the top ten cryptocurrencies by market cap. Started by the Web3 Foundation, Polkadot works as a multichain protocol that uses “parachains” allowing other networks to connect to Polkadot as sidechains. Polkadot thus aims to drive interoperability among different blockchains.
Polkadot’s native DOT crypto has almost doubled since the beginning of 2021 and has climbed up the ranks to become the fourth-largest crypto by market cap. At press time, DIT is trading at a price of $15.52 with a market cap of $13.9 billion.
Oracle service provider Chainlink has also registered good growth in the meantime. The oracle network has a very useful application of providing data to smart contracts across multiple blockchains. Chainlink (LINK) has emerged as a major tool within the DeFi space for providing high-quality tamper-proof data to different DeFi protocols.
Chainlink’s native coin LINK cryptocurrency surged to an all-time high of $25 in recent times. The Chainlink crypto is now the 8th largest cryptocurrency by market cap. The Chainlink price prediction by analysts shows that it must hold up to the crucial support levels of $20.
Thus, for Ethereum to keep its dominance in the DeFi space, the developments for Ethereum 2.0 are very crucial at this stage.
Bitcoin (BTC) Price Tanks 8% Moving to Crucial Support Levels of $30,000
Moving into the broader crypto market, there’s a major correction currently in the overall cryptocurrency market with the crypto market cap falling straight below $900 billion.
The world’s largest cryptocurrency Bitcoin (BTC) is down over 8% and is currently trading around its crucial support levels of $30,000.
Bitcoin has been moving sideways over the last two weeks with mounting selling pressure and weakening institutional participation. The BTC whales have resolved to profit-booking in recent times.
On the other hand, some on-chain fundamentals continue showing strength. On-chain data provider Santiment notes that the number of addresses interacting on the Bitcoin network continues to increase steadily.
Along with Bitcoin, the world’s second-largest cryptocurrency Ethereum (ETH) has also entered a sharp correction after hitting an all-time earlier on Monday, January 25. At press time, ETH price is down more than 8% and has slipped below $1250 levels.
Although ETH has corrected 10% from its ATH, investors still maintain caution. Since January 7, the new ETH daily addresses joining the network has declined by 20%. This could be a red flag in the ETH price growth going ahead and leads to downward Ethereum (ETH) price predictions.