After Dogecoin now DeFi? Why DeFi bulls are extremely optimistic
The trading craze is coming to an abrupt end on many exchanges, with trading in stocks and cryptocurrencies being halted time and again. Could the DeFi sector be one of the main winners of the trading hype of the last few days?
This week the news is rolling over and the hype in the stock and crypto markets is enormous. After the Reddit group r/wallstreetbets first catapulted GameStop’s share price, a short time of Bitcoin Trader later it was Dogecoin’s turn. Within the last seven days, the price of the meme coin has risen by over 500 percent. But that’s not all.
On Friday morning, the rumour mill on Twitter started churning, with many suggesting that Elon Musk has now invested in Bitcoin. Subsequently, not only did Bitcoin skyrocket, but many other cryptocurrencies joined the price rally.
What impact could the developments of the last few days have on the DeFi sector?
Not only Dogecoin and Bitcoin (BTC) saw huge price increases, but also the „ETF token“ DeFi Pulse Index (DPI) rose by 28.10 percent.
This week, the DeFi index benefited most from the price gains of the lending project Aave (AAVE) and the decentralised exchange (DEX) UniSwap.
AAVE gained 49.73 per cent and UNI even rose by over 70 per cent. In addition, the total value locked indicator, which shows how much money is in the DeFi sector, also grew enormously.