Time to bet on Defi-Token again?

While most of the coins in the market posted negative gains over the past week, Defi tokens such as Uniswap, Aave, and SushiSwap posted gains of 1.1%, 2.8% and 6.3%, respectively. In fact, the general sentiment of market participants towards this token is quite positive.

According to recent data from Messari, tokens associated with DEX and DeFi platforms in general can outperform currencies and smart contracts. This is a remarkable achievement.

So is it time for a bullish bet?

Projects with a relatively lower market capitalization, like the ones mentioned above, are usually only influenced by the entry or exit of traders. However, the broader DeFi market has not seen a retreat so far. In fact, the influx of new addresses into the space has been fairly constant over the past few months. At the time of writing, there are 3.38 million unique DeFi addresses.

DeFi user aggregation | Source: Dune Analytics

In addition, the aforementioned increase is accompanied by an increase in trading volume. This factor also plays an important role in price dynamics.

Additionally, the DeFi Index has made rapid strides, climbing from $ 6.6,000 to $ 11,000 in less than three months.

Trading volume AAVE, SUSHI, UNI | Source: Santiment

The market capitalization / TVL data is also bullish so far, which underscores the HODL behavior of market participants. At the time of writing, the ratios for UNI, AAVE and SUSHI are 2.65, 0.32 and 0.44, respectively. It can therefore be concluded that the aforementioned tokens are currently presenting themselves as a profitable long-term investment option.

In addition, the net outflows on the stock exchanges of all three have so far decreased sharply, so that the outflows will increase sharply. This essentially underscores the migration of DeFi tokens to private wallets and cold storage.

For example, on September 17, the cumulative SUSHI volume on the exchanges was 4.9 million tokens, but at the time of writing it was -1.1 million.

Net flow SUSHI | Source: IntoTheBlock

The above data underscores the continuing accumulation trend in the DeFi market. As the demand for these tokens increases, buying pressure will also increase in the coming days and could drive the price north.

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Annie

According to Ambcrypto

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