Decentralized finance recently hit a new high in locked value. As of today there are $ 14.2 million blocked in DeFi protocols, and if you want to know how the largest of this ecosystem are behaving, check the analysis that we prepare below.
Total value locked in DeFi. Source: DeFi Pulse.
DeFi Review with Highest Value Locked
Decentralized lending platform Maker just peaked at $ 1.64 billion
Maker is the creator of Dai, a stable currency whose value is pegged to the US dollar. Currently this stablecoin has a capitalization of $ 1,019 million, and is positioned as the 3rd largest DeFi token below LINK and WBTC.
The Maker platform can be used by anyone to open a vault, in which collateral such as ETH or BAT can be deposited to generate DAI. Those same DAI tokens can be blocked in the DSR contract of the Maker platform, in order to generate interest.
MakerDAO’s native token is MKR, the platform’s governance token with which users vote to decide the future of the protocol when changes or improvements are proposed.
It is the growing demand for stablecoins that is making the value locked in this protocol grow so much. And at the moment there is nothing to indicate that this trend is going to end soon.
Compound is an algorithmic money market protocol, which runs on the Ethereum network just like Maker.
Through it, users can earn interest or request loans, leaving assets as collateral.
Anyone can supply liquidity to the Compound protocol, and immediately start earning interest.
It supports BAT, DAI, SAI, REP, ETH, USDC, ZRX and WBTC assets.
We are talking about a fully audited protocol. We will hardly be seeing a reversal of Compound’s growth trend any time soon.
The native token of this platform is COMP, mainly used for governance assigning voting power to users. It is currently trading at $ 128.29, wrapped in a short-term bullish trend, but still overshadowed by a strong medium-term bearish direction.
Technical analysis of the main DeFi tokens
LINK is the native token of the Chainlink platform, the main provider of oracles for the resolution of smart contracts.
Today LINK is trading at $ 14.92, thanks to a short-term uptrend that has kept it creating ever higher highs and lows.
From the daily chart we observe a price locked in an ascending channel.
The 200-day SMA SMA says that Chainlink is bullish over the medium term. For this reason, there should soon be an increase in volatility to the upside, when the price manages to break the upper part of the channel in which it is trapped.
Analysis of Chainlink, the largest DeFi token. Source: TradingView.
UNI from Uniswap, is the 4th DeFi token. Above is WBTC, an ERC20 token pegged to the price of Bitcoin, and DAI, MakerDAO’s stablecoin.
At the launch of UNI, the jump in price was really big. Then, a short-term downtrend began to develop, but with no significant volume at all.
When we do an analysis of this DeFi token, we realize that it is bullish again in the short term. The moving averages EMA of 8 and SMA of 18 days support that direction, also functioning as dynamic supports.
UNI is currently trading at $ 3.87. Its historical maximum is at $ 8.44, and the current behavior seems willing to seek that previous record, or, will it want to exceed it ?, probably.
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