Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump

By October 31, 2020Bitcoin Business
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Top coins in the decentralized finance (DeFi) space such as Uniswap’s UNI and AAVE have slipped lower even as Bitcoin inches higher. Most top DeFi coins have dropped approximately five percent in the past 24 hours as per CoinGecko while Bitcoin has gained over 2%. The leading cryptocurrency briefly traded above the pivotal $14,000 resistance level today but has since dropped due to large sell orders in the $14,000 range.

Strong Fundamentals Contadict Drop in Coins Such Uniswap, Aave, & More

The strong decline in the coins of top DeFi players such as Uniswap, Aave, Synthetix, and Yearn.finance is contradicted by fundamentals. The fundamentals of the decentralized finance space have only strengthened over recent weeks and months, confusing investors in the space.

Head of DTC Capital Spencer Noon noted that while top coins are down by over 60% from their highs, the “most important indicators” of the health of DeFi are pushing new all-time highs:

“Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators… Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing… And yes, I believe burnout played a major factor in the recent DeFi drawdown. Farmers spent 3 months making serious gains but with barely any sleep. When the market naturally corrected, anecdotally many of my farmer friends decided to hit the sidelines out of sheer exhaustion.””

This was echoed by analysts like Jack Purdy of Messari. On-chain trends show that a large amount of capital continues to enter DeFi contracts to be used in the ecosystem.

More Losses to Come

Despite this, some fear that more losses are to come for this market due to the losses being seen in Uniswap, Aave, Synthetix, and Yearn.finance.

Qiao Wang, a prominent crypto-asset analyst, recently commented on the matter:

“I constantly update my views and unfortunately it looks like there’s going to be more pain in DeFi. Originally I thought we won’t see an 80–90% crash which is typical of alts because of the level of sophistication of DeFi investors but that thesis is being invalidated.”

He explained that due to the weak performances of top DeFi tokens, other assets pertaining to the space will drop by affinity.

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Price tags: uniusd, unibtc, unieth, aaveusd, aavebtc, aaveeth, snxusd, snxeth
Charts from TradingView.com
Uniswap, Aave, Synthetix Continue to Slip Lower in Face of Bitcoin Bump

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