YFI, Aave, Maker benefit from Bitcoin and Ethereum resilience
In the past 12 hours, both Bitcoin and Ethereum have recovered by around 2% to 3%. BTC rose higher after the quarterly close on October 1, causing the market sentiment to turn increasingly positive.
When the price of Bitcoin initially fell to as low as $10,665 on September 30, YFI plunged to $21,800. In recent weeks, after YFI reached a billion-dollar market cap, it has led the performance of many small-cap DeFi tokens.
Since then, in the last 12 hours, YFI has recovered to $24,000, rising by 10%. At the daily peak, YFI hit $26,250 across major exchanges, recording a 20% rally.
In the same period, Aave’s LEND token rebounded by nearly 12% and Maker posted an 18% rally. In the past 24 hours, Maker gained 30% after a surge in total value locked.
Product launches and rising DeFi demand are buoying investor confidence
The recovery of Bitcoin and Ethereum aided the rebound of DeFi tokens, but major DeFi projects also released major updates.
Yearn.finance, for instance, announced the release of Yearn v2 Vaults. One of the major factors behind the meteoric rise of YFI was the demand for its vaults. They allow Ethereum and other token holders to earn passive yield with minimal risk.
“While new governance tokens and sky-high APYs stealing all the attention during the latest DeFi Summer Maker has quietly grown to almost $2 billion in value locked.”
The confluence of the overall market recovery, key product launches, and crucial network upgrades aided the recovery of DeFi.
Data from Defipulse.com shows that the total value locked across all DeFi protocols is steadily recovering. The TVL is now at an all-time high above $11 billion, depicting strengthening investor confidence amid a market draught.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com