Is it time to invest in DeFi tokens again? While most of the coins in the market posted negative gains in the past week, Uniswap, AAVE and SushiSwap managed to gain 1.1%, 2.8% and 6.3% respectively. In fact, the collective sentiment of market participants towards DeFi tokens has been quite positive lately. For details Cryptocoin. com

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AAVE upside?

According to crypto expert Lavina Daryanani, DEXs and tokens associated with DeFi platforms were able to outperform the cryptocurrency and smart contract category overall. In itself, this is a remarkable achievement that these tokens have achieved together. So, is it time to invest? Projects with a relatively lower market cap, such as the ones mentioned above, often tend to be affected by the entry or exit of traders. However, the broader DeFi market has not witnessed a notable debut in the late saadollarser. The flow of new addresses into the crypto market has actually been pretty steady over the past few months. At the time of writing, there were 3.38 million unique DeFi addresses.

In addition, the increase in transaction volumes accompanied the increase in question. This factor also played an important role in contributing to the ascension narrative. Additionally, the DeFi Index reading has made rapid strides of late. The same thing managed to go from $6.6k to $11k in less than three months.

When is the investment time?

Market Cap/TVL data has also been bullish recently, highlighting the HODLing behavior of market participants. At the time of this writing, the ratios for UNI, AAVE, and SUSHI were 2.65, 0.32, and 0.44, respectively. According to crypto expert Lavina Daryanani, therefore, it can be concluded that these tokens currently present themselves as a profitable long-term investment option. Also, net flow on exchanges for all the aforementioned tokens dropped sharply, indicating an increase in outflows. This essentially underlines the movement of DeFi tokens to private wallets. For example, on September 17, the total volume of SUSHI on exchanges was as high as 4.9 million coins. However, at the time of writing, the same value reflected 1.1 million.

According to crypto expert Lavina Daryanani, the above-mentioned datasets together highlight the continuing trend of accumulation in the DeFi market. According to the analyst, as the demand for these tokens increases, buyer-side pressure will increase in the coming days and investors can expect the valuation of these tokens to increase in parallel.

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Michael Lewis


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