Defi Tokens: In a notable shift in the crypto market’s focus, DeFi (Decentralized Finance) assets have begun to recapture attention amidst the burgeoning AI craze. According to a recent analysis by Santiment, a leading crypto analytics firm, prominent DeFi tokens such as UNI (Uniswap), COMP (Compound), SUSHI (SushiSwap), and AAVE have experienced significant spikes in value. This surge can be directly attributed to a critical proposal by Uniswap aimed at rewarding its users who stake and delegate their tokens.
The proposal has sparked renewed interest in the DeFi sector, highlighting its potential for innovation and growth independent of central financial authorities. As per coinmarketcap, the DeFi crypto market cap stands at $88.97 Billion, a 23.80% increase since yesterday.
#DeFi has taken some of the spotlight from the #AI craze. Assets that enable users to lend, borrow, or exchange #crypto without a central authority like $UNI, $COMP, $SUSHI, and $AAVE all spiked in value following a key #Uniswap proposal to reward staked and delegated token… pic.twitter.com/xnxWivoX9R
— Santiment (@santimentfeed) February 23, 2024
The momentum traders looking for a new entry opportunity can keep an eye on DeFi tokens like UNI, AAVE, and LINK.
Also Read: Bitcoin ETFs & Crypto Stocks Lose Steam Amid These Key Developments
Uniswap Price Recovery Fueled by Governance Innovations
UNI, the native token of decentralized trading protocol Uniswap emerged as one of the highest weekly gainers among the top 100 coins by market cap. On Friday, the coin price witnessed a massive inflow of nearly 80% which propelled the assets from $6.9 to $12.6.
This price surge is attributed to a proposal by UF Governance Lead @eek637 to revamp Uniswap’s governance system by rewarding staking and delegating UNI token holders, aiming to boost community participation and the effectiveness of governance.
New Governance Proposal Posted
UF Governance Lead @eek637 just posted a proposal to upgrade Uniswap Protocol's governance system. Specifically, this upgrade would reward UNI holders who have staked and delegated their tokens.
— Uniswap Foundation (@UniswapFND) February 23, 2024
In addition, the analysis of the daily time frame shows the current recovery to assist in the formation of a rounding bottom pattern. This chart pattern signals the start of a new bull run after the asset has been through a long accumulation.
Currently trading at $11.18, the Uniswap price is likely to challenge the pattern’s neckline resistance at $12.5. A breakout above this neckline could amplify the recovery momentum and target $21.
Also Read: Uniswap Technical Analysis Hints the 55% Price Surge is Just the Beginning
Key Resistance Breakout Signal AAVE Price Rally Beyond $100
Amid the broader market sentiment, the AAVE price entered a sustainable recovery trend in the second week of February. The positive turnaround surged the token from $82.2 to the current trading price of $99.76, registering 21% growth.
Moreover, Binance recently announced on X (formerly Twitter) that Aave, the top DeFi money market protocol, has integrated with the BNB Chain ecosystem. This partnership grants BNB Chain users access to Aave’s premier lending services and improved liquidity, with FDUSD providing strong liquidity from the outset.
This integration is pivotal for expanding DeFi access and has coincided with a notable increase in Aave’s token price, reflecting the market’s positive response to Aave’s expansion and the potential for increased usage and liquidity within the BNB Chain ecosystem.
1/ Today, we're thrilled to announce that @aave, the largest DeFi money market protocol, has officially joined the BNB Chain ecosystem.
Let's dive into the details and explore these exciting developments.
pic.twitter.com/SVevNFA8bG
— BNB Chain (@BNBCHAIN) February 22, 2024
With an intraday gain of 5.5%, the AAVE price provides a decisive breakout from the last swing high resistance of 97.8%. If the coin price shows sustainability above this level, the price will chase the potential target of $117.
Also Read: Warren Buffett’s Berkshire Hathaway Makes a $1 Billion Move On This Crypto Stock
Reversal Pattern Sets Chainlink Price to Chase $30
The current consolidation in the crypto market took a significant toll on the LINK coin as the price entered a new correction from the $20.8 mark. The reversal has tumbled the coin value 11.25% within two weeks to currently trade at $18.47.
However, an analysis of the daily chart shows, that the falling Chainlink price retested the recently breached resistance of cup and handle pattern. Amid the DeFi sector boost, the LINK price rebounded from $17.56 support with a morning star candle.
The reversal at key support reflects the renewed buying interest among traders during market dips. With sustained demand, the LINK price is poised to change the potential target of $30.
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