Ethereum-based DeFi projects have been booming in the past few days. Since Feb.1 alone, Locked Total Value (TVL) has approached $ 5 billion and currently stands at $ 32.48 billion at the time of writing.
Increased adoption of DeFi protocols is reflected in TVL and also leads to incredible profits for DeFi token investors. Uniswap (+ 44%), Aave (+ 50%), SushiSwap (+ 106%), UMA (+ 236%) and Compound (+ 76%) have been arguably the biggest winners in the crypto market in the past 7 days.
Looking at the market overview today, UMA (+ 150%) and Aave (+ 35%) show the highest price increases in the past 24 hours. While UMA was traded at $ 35.41 at the time of writing, Aave traded close to $ 400 at $ 399.26 and placed 15th with its market capitalization.
Aave – The bullest altcoin in the DeFi space?
With the recent AAVE price rally, the Aave platform’s TVL also rose 23% in a single day and is now on the verge of surpassing $ 5 billion. With this, Aave remains the second largest protocol in Ethereum’s DeFi industry, after Maker.
Popular crypto trader “Smart Contractor” recently told his 90,000 followers that Aave is one of the most promising altcoins on the market after Ethereum’s bull run. The trader analyzed that AAVE is significantly higher on all charts (USD, BTC and ETH). In this context, the AAVE price rally may be far from over.
As Santiment pointed out yesterday, the recent share price rise came in line with the entry of many large investors into AAVE. The on-chain data provider noted:
#DeFi is alive and well in # crypto because $ AAVE showed + 33% gains the other day. Aave whales, which we consider to be addresses holding # 1,000 or more tokens (~ $ 397,000 + USD), rose from 266 to 327 addresses last month, sparking this rally.
The reasons for the rise of UMA
The UMA token currently ranks # 25 with a market cap of just under $ 2 billion. Universal Market Access (UMA) allows users to create synthetic assets and is not limited to traditional financial instruments.
The current uptrend could possibly be related to the announcement yesterday that the UMA protocol launched the uSTONKS token in collaboration with Yam Finance. The USTONKS token is a synthetic token that tracks a directory of the ten most commented stocks on the infamous WallStreetBets Subreddit.
In addition, UMA announced that the 2020 Q4 upgrades are fully supervised by the Open Zeppelin Team. Updates included new flexible optimistic oracles and continuous synthetics.