DeFi projects seem to skyrocket as several tokens were performing even better than Bitcoin. Following the data from the CoinMarketCap, it was observed that on Friday, the most famous crypto token was slipping on lower than average volumes for this year so far. Even though the major tokens like Bitcoin and Ethereum are trading at higher price levels, some DeFi tokens like Synthetix and Aave are also performing tremendously.
Performance comparison of some DeFi tokens and Bitcoin
Last week after facing a significant sell-off, the price of Bitcoin was climbing steadily on Friday. However, by the end of the day, the price again dropped, to trade around $35,610, which was an intraday slip of approximately more than 9%. The price and the average volume traded of the token have also decreased to $4.2 billion from nearly $6 billion since the beginning of this year.
However, Bitcoin is still up by more than 20% this year. On the other hand, two notable projects built on the blockchain of Ethereum, for DeFi, are also competing with major tokens. Such tokens include Aave and Synthetix. Following the data from the price charts, it is known that, so far this year, Synthetic has gained more than 83%, whereas Aave has surged more than 69%.
DeFi tokens have some growth potential if executed well
According to Jean-Marc Bonnefous, the managing partner at Tellurian Capital, such DeFi tokens have immense upside potential in bullish markets. Recently, Bonnefous revealed DeFi tokens’ performance via tweet and mentioned how the tokens are outperforming major crypto assets. However, though the tokens can outperform, they also consist of several downsides like less popularity and less liquidity. However, by nature, such tokens will likely outperform in a bullish market, and conversely, in a bearish market.
Tug and pull among crypto traders from different regions
Observing the price of Bitcoin since the beginning of this year, it is observed that the token is in pretty bearish sentiment. Observing the bearish sentiment of BTC and the decrease in the spot volume, Joel Edgerton, the chief operating officer of Bitflyer, mentioned that there is a definite tug and pull among crypto traders, specifically among North America and Asia. Joel also mentioned, as for Martin Luther King Jr Day, many US traders will be off on Monday, Asia will likely set the tone.
