The DeFi market sees a rebound after a recent drop

Written by: Ali Raza
September 10, 2020
  • The DeFi sector is seeing a recovery after a strong drop over the past two weeks.
  • Many of its coins are currently trading in the green, with a lot of them seeing quite a strong recovery.
  • In fact, DeFi tokens are outperforming the broader ETH market.

The DeFi sector has had a rather rough week recently, with plenty of its projects’ tokens losing quite a lot of their value. Some have even seen a 50% price drop in the bearish wave that had replaced the bulls and caused a correction.

But, it would seem that the bears are withdrawing again, and the recovery is taking place once more.

Ethereum itself saw a major price drop

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According to recent data, the DeFi sector has bounced back up quite strongly. While the coins are still not as high as they were before the drop — indeed, most are not even close — the sector itself has seen a 19% rebound.

Ethereum itself is seeing significantly better performance now than it did, as the coin went up by 11% in only 24 hours.

ETH has dropped quite strongly, from its peak at $490, to the bottom of $320. Yesterday, it was battling a resistance at $350, but the recent surge allowed it to breach it, and it currently sits at $362, preparing for further growth.

The impressive DeFi recovery

As for the DeFi sector itself, Messari data claims that 32 out of 37 tokens are trading in the green, with some seeing quite a strong recovery. Some DeFi tokens are surging by only 3%. Others are performing better, going up by up to 39,6% in the last 24 hours.

The example of the latter one is Swerve (SWRV), which is then followed by (YFI), with a 37.6% surge. Then, there are coins such as Loopring (LRC) that is growing by 29.9%, Aave (LEND) that went up by 29.4%, and more.

YFI has surprised analysts with its excellent performance, especially since the coin’s APY (Annual Percentage Yield) has been quite low since its launch. But, the project saw strong daily returns, which is likely what is fueling its rally.

Right now, the DeFi sector’s popularity seems to be persistent enough to allow these tokens to outperform the wider Ethereum ecosystem. Even so, around 136 out of 178 ETH-based cryptos are now in the green.