Decentralized Finance (DeFi) is one of the hottest topics in the crypto world. While many of these projects are being discussed in terms of the Relation of chances and risks, to be controversial, can Token the majority of the DeFi, without a doubt, with strong Performances Shine. In this article we want to look at the recent gains of Aave (LEND), as well as Synthetix (SNX).
DeFi Token is stagnating on the rise while BTC
This Morning we have already reported in our market update on Bitcoin, stocks, and precious metals. A finding from this was that the volatility of BTC is currently at a low level. In Parallel, the trading volume decreased in the past few days.
While Bitcoin stagnates so from the course perspective, shifted the interest of many investors in the direction of Decentralized Finance. The high volatility of some of the Token paired with the possibility of Yield Farming, many are looking for the quick dime lures.
The focus is on the two DeFi Token Aave (LEND), as well as Synthethix Network (SNX) today. These were able to achieve in the past seven days, a significant Outperformance. Briefly there was even a “Flippening”, in which the two Token MakerDAO (MKR) obsolete.
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Aave (LEND) and Synthethix (SNX) with Outperformance
A good example of the Outperformance of the below Chart. SNX could alone rise, in the last 7 days from the initial 2.40$ to a current rate of around 3.80$.
Also, the LEND is considered to be a clear Outperformer. The following Chart shows the price performance since the 01.01.2020:
The risk of DeFi shows the growth curve of Lend already. While the majority of these tokens at the beginning of the year, relatively quiet, exploded the interest and thus the prices for about 2-3 months. It is an explosive and not just sustainable growth, it should also be clear. In this respect, each party should deal intensively with the respective DeFi project and not blind promises be trusted, as it was, for example, in the framework of the ICO hype in the year 2017.
While Decentralized Finance is without question an exciting topic, it threatens some of the tokens currently, the risk of Overvaluation. The Opposite is, for example, in the case of LEND for many investors, the concept of sustainability. After all, who owns the Token, it receives voting rights, which can be a long-term positive development of much value. But here’s a speculative thought, with floats, of course.
What do you think about the recent gains of Aave and Synthetix? – Do you see the danger of Overheating or Decentralized Finance is still at the beginning of a long development?
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