The slump in the crypto market on Tuesday reverberates and it shows: leading DeFi tokens from AAVE to Uniswap (UNI) were hit even harder by the fall in Bitcoin prices than BTC itself.
The price curve of Bitcoin (BTC) experienced dramatic hours the day before yesterday and in the negative vortex the reserve currency dragged the overall market down with it. Looking back, it becomes clear that the booming DeFi division, in the form of its blue chips such as Chainlink (LINK) or Uniswap (UNI), was unable to counter the dynamics when Bitcoin tumbled. When the situation calmed down on Wednesday, BTC was down around 11 percent and Ethereum (ETH) was even 15 percent. But anyone who had hoped that the steady growth in DeFi could decouple the associated altcoins from the trend was wrong.
- Uniswap (UNI) had to cope with a 15 percent minus and may also have serious problems with the US Securities and Exchange Commission.
- Chainlink (LINK), the leading data service for DeFi, lost 16.4 percent.
- AAVE got off a bit more lightly with a minus of 12.5 percent.
- PancakeSwap (CAKE), a major competitor of Uniswap, fell 17.4 percent.
- Terra (LUNA) as a DeFi blue chip with a focus on stablecoins was able to hold its own comparatively well with “only” 8.3 percent minus.
Solana (SOL) can confirm status as the star of the hour
The big outlier under these circumstances remained Solana (SOL), which many also classify as a DeFi token. Solana temporarily slipped into the red, but has already resumed its rapid upward trend. After the all-time high at the beginning of the week at SOL at 185 US dollars, Solana has now apparently easily overcome the psychologically important hurdle of 200 US dollars and is once again setting an impressive all-time high at 214 US dollars.
Conclusion: Is it a good time to invest in DeFi Altcoins?
The analyzes after the Bitcoin price drop suggest that the red hours were triggered by speculative transactions. The resulting healthy market shakeout is basically to be welcomed. So there are certainly arguments for using the current situation to include DeFi Altcoins in your portfolio. One insight for you as an investor remains in any case: Even if Bitcoin and DeFi are theoretically two different pairs of shoes – the psychological effect of hefty price movements at BTC does not leave DeFi indifferent, but even tends to have a disproportionately high impact.
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