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DeFi market retreats, but not much to worry about


The ecosystem of decentralized finance continues to grow, but it does not make it escape certain corrections such as the one it is going through today. Since its explosion in June, the DeFi market has not stopped growing. Today it has a total locked value of $ 11,160 million, achieved after falling from a historical maximum of $ 12,416 million.

Total value locked in DeFi. Source: DeFi Pulse.

Among these applications, the leadership is held by the decentralized exchange Uniswap, with a percentage of dominance over the market of 24.04%, thanks to a locked value of $ 2.6 billion.

The second place is occupied by Maker with $ 1.98 billion locked, and followed by WBTC in third place with $ 1.62 billion in locked value.

Today’s session is marked by earnings. The entire TOP 10 DeFi is in the green, which could be resuming the impressive uptrend that this ecosystem has maintained in its short life.

Despite some skepticism regarding the long-term sustainability of decentralized finance, the important use cases that this ecosystem may be offering are well known.

Top 10 decentralized finance platforms. Source: DeFi Pulse.
Top 10 decentralized finance platforms. Source: DeFi Pulse.

Investors migrate to “safe”

While it is true that the exaggeration of prices in governance tokens, and market manipulation does not generate much confidence in the DeFi, panelists of the report of cryptocurrencies Finder, agree that the ecosystem should keep growing at least in the short term .

Also keep in mind that investors could be securing profits by moving to stronger ground. This may be marking the end of the speculative “bubble” in decentralized finance, and a strong migration of capital to Bitcoin, Ethereum, among other currencies with longer trajectories.

Jonathan Hobbs, author of The Crypto Portfolio, shared his vision of the current landscape for CoinTelegraph. He assures that the plays in DeFi became too speculative, as it usually happens in this industry. Now we can see how part of that capital is moving back to Bitcoin, evidenced by the increased dominance of this cryptocurrency, he explained.

A survey by CryptoCompare asks 26 traders their opinion on the future of DEX; The answer, only 7.7% believe that these will overtake centralized exchanges in the next 2 years.

And even though decentralized exchange activity has been declining, some see this as a good thing in the long run. For example Jonathan Ige, a researcher at Amun AG, points out that while the decline in DeFi hype disappoints speculators in the short term, this is likely to be good for the industry overall. The bubble was not sustainable, but it showed the really useful cases of this ecosystem.

Technical analysis of the Uniswap token

While the locked value of decentralized finance is still near its all-time high, the governance tokens of the major DeFi platforms do not perform the same.

One of those tokens that gave more to talk about was Uniswap, after an incredible jump in its launch.

However, as the days passed, the price was breaking supports continuously.

As a consequence today the price is involved in a short-term uptrend that does not show signs of reversal at the moment.

Either way, even the volume of the drop is not at all worrisome, and it could certainly be eliminated quickly. But for now you have to continue monitoring to look for signs that this is going to happen.

Today the price of UNI is $ 2.36, with gains of 0.56% so far this day.

Chainlink (LINK), the largest token in the DeFi market

Although it is not a chain that contributes to the total blocked value of DeFi, it is an important participant in this ecosystem, in its role as provider of oracles for the execution of smart contracts.

The LINK token is the largest in the DeFi market by market capitalization, at $ 4.411 billion. Today its price is $ 11.30, presenting gains of 2.30% in the last 24 hours.

LINK has been recovering lately from a deep 63% correction. As a result of this recent behavior, its price was involved in a short-term uptrend, thanks to continuous breaks in resistance.

The moving averages 8 EMA and 18 day SMA are crossed to the upside, and may be working as syndic support.

The 200-day SMA is currently bullish, following the strong gains of this token in recent months, and indicating that the medium-term trend is bullish.

Taking into account that in the medium and long term the Chainlink trend is bullish, the succession of highs that has been developing recently may be the resumption of these trends, which should seek a new all-time high.

LINK vs USDT daily chart. Source: Tradingview.
LINK vs USDT daily chart. Source: TradingView.

All our publications are informative in nature, so in no case should they be taken as investment advice.

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