The DeFi space rose to incredible heights all throughout 2020 but could have come to a roaring peak over the summer months. Assets like Yearn.Finance (YFI), Uniswap (UNI), or Aave (LEND) are all on the ropes, and related Ethereum-based decentralized finance tokens have fallen 60% across the board.
But despite the drawdown already, one sharp-eyed trader is warning that DeFi tokens lack “capitulation volume” that would signal a bottom is in. Here’s what to watch for and if that trader’s theory has validity.
Trader Calls Attention To Lack Of “Capitulation Volume” In Top DeFi Tokens
The total USD and Ethereum value locked in DeFi applications have a trajectory that matches Bitcoin’s parabolic climb into stardom in 2017.
Numbers grew from meager beginnings in early 2020 and quickly ballooned to over $11 billion TVL recently. The DeFi trend spilled into everything else, improving the health and valuations of the entire crypto space.
Ethereum benefited some of the most in the top ten, thanks to most of these tokens utilizing the blockchain, and requiring ETH gas fees to transact. The rest of the DeFi space went on such a tear, several tokens achieved four and five-digit ROI in the summer months alone.
Related Reading | Ethereum Leads DeFi Tokens On A 60% Average Fall From Summer Highs
Yearn.Finance (YFI) appeared out of nowhere and surged to four times the price per BTC. Uniswap also was minted