DeFi Tokens Outperforming Bitcoin — Aave, Chainlink, and UNI Storming the Market with 35% Surge

DeFi tokens and altcoins have accumulated considerable gains of up to 30 % in price in the last few days. While Bitcoin still struggles to break the $32K barrier, several tokens have surpassed previous price records and setting new all-time highs, considering the increased volumes of DEXs —decentralized exchanges—, and traders looking for Altcoins with limited supply, but greater performance.

DeFi Tokens Doing Better Than Bitcoin

Despite a generally bearish market for the DeFi ecosystem at the end of 2020, DEX volumes have increased 8X by project, according to data from Dune Analytics, sparking DeFi-related tokens like Curve DAO and Uniswap UNI.

From June 2020 to this month, the DeFi ecosystem has increased considerably surpassing $35B in total value lock with Uniswap —one of the most popular decentralized protocols— leading the charts.

Besides UNI, other tokens like Chainlink’s LINK and Aave have surged with double-digit gains in the last seven days. LINK has accumulated 15 % in price, outranking Litecoin as the number 7 per market capitalization.

Similarly, UNI and Aave have outperformed Bitcoin in the last few days with both tokens gaining 30-37% in price. Likewise, despite the recent price surge this month, holders are still accumulating large amounts of UNI tokens, setting the scene for a larger bull run.

On the other hand, Bitcoin still struggles to break the $32K, despite MicroStrategy recently purchasing $10M worth of BTC. The consolidation is viewed as institutional exhaustion and the uncertainty of the upcoming institutional weather under the Biden administration.

As for the top DeFi tokens in the market, LINK, UNI, and Aave are leading the top 5, together with Wrapped BTC in the #3 spot.

Despite the recent bearish week for Bitcoin, traders are expecting a recovery in price considering that this January 25, leaders from the World Economic Forum will discuss digital currencies as part of their Davos 2021 Agenda. Cryptocurrencies will be one of the main issues to be discussed in a session called “Resetting digital currencies”.

The panel will focus on the current environment for Bitcoin and other cryptos and the opportunities they present compared to the decreased cash use and considering how several central banks globally are issuing CBDCs —Central Bank Digital Currencies—.

Get Involved with DeFi

In Australia, there has been an increased interest in DeFi tokens now that Kraken is trying to expand its presence in the country and in the United Kingdom. The U.S.-based exchange will introduce 26 new trading pairs, including LINK and Aave that Aussies can trade with AUD.

Likewise, there are several popular Australian platforms where people can buy and trade numerous pairs, like the Brisbane-based Swyft, an exchange that offers over 200 trading pairs, including LINK and Aave — or Binance Australia, one of the largest crypto-platforms in the world, that host more than 700 pairs.