The DeFi (Decentralised Finance), have been retreating recently, but the overall upward trend remains intact.
The ecosystem of decentralised finance continues to grow, but it does not escape certain corrections such as it is experiencing today. Since its explosion in June, the DeFi market has not stopped growing. Today it has a total blocked value of $11.16 billion, achieved after falling from a historic high of $12.46 billion.
Among these applications, the leadership is held by the decentralised exchange Uniswap, with a market dominance of 24.04%, thanks to a blocked value of $2.6 billion.
Second place is held by Maker with $1.98 billion blocked, followed by WBTC in third place with $1.62 billion in blocked value.
Today’s day is marked by profits. The entire TOP 10 DeFi is in the green, which could be resuming the impressive upward trend that has kept this ecosystem in its short life.
Although there is some scepticism about the long-term sustainability of decentralised finance, it is well known what important use this ecosystem may be offering.
Investors migrate „safely
While it is true that exaggerated prices in governance tokens, and market manipulation do not generate much confidence in the DeFi, panelists from the Finder cryptosystem report agree that the ecosystem should be kept growing at least in the short term.
It should also be considered that investors may be securing profits by moving into more robust territory. This may be marking the end of the speculative „bubble“ in decentralised finance, and a strong migration of capital to Bitcoin, Ethereum, among other more established currencies.
Jonathan Hobbs, author of The Crypto Wealth Portfolio, gave CoinTelegraph his view of the current situation. He assures that the moves in DeFi became too speculative, as is often the case in this industry. Now we can see how part of that capital is moving back to Bitcoin, evidenced by the increasing dominance of this cryptomon currency, he explained.
A survey conducted by CryptoCompare, asks 26 operators their opinion about the future of DEX; the answer, only 7.7% believe that DEX will outperform centralised exchanges in the next 2 years.
And although the activity of decentralised exchanges has been decreasing, some consider this to be good in the long term. For example Jonathan Ige, a researcher at Amun AG, indicates that while the decline in DeFi advertising disappoints short-term speculators, this is likely to be good for the industry overall. The bubble was not sustainable, but it showed the really useful cases of this ecosystem.
Technical analysis of the Uniswap token
While the locked-in value of decentralised finance still remains close to its historical peak, the governance tokens of the main DeFi platforms do not behave the same way.
One of the most talked about tokens was the Uniswap token, after an incredible leap in its launch.
However, as the days went by, the price broke continuously.
As a result today the price is wrapped in a short term upward trend that shows no signs of reversing for the time being.
However, even the volume of the fall is not at all worrying, and could certainly be quickly eliminated. But for now we must continue to monitor for signs that this is going to happen.
Today’s UNI price is $2.36, with gains of 0.56% so far this week.
Chainlink (LINK), the largest token in the DeFi market
Although it is not a chain that contributes to the total blocked value of the DeFi, it is an important participant in this ecosystem, in its role as a provider of oracles for the execution of intelligent contracts.
The LINK token is the largest in the DeFi market by market capitalization, with $4.411 billion. Today it is priced at $11.30, showing a 2.30% gain in the last 24 hours.
LINK has been recovering lately from a deep correction of 63%. As a result of this recent behaviour, its price has become involved in a short term upward trend, thanks to continuous resistance breaks.
The 8-day EMA and 18-day SMA moving averages are crossed upwards, and may be working as a support for syndications.
The 200-day SMA is currently bullish, following strong gains in this token over the past few months, and indicating that the medium-term trend is upward.
Considering that the medium to long term trend of Chainlink is upwards, it may be that the succession of highs that have been developing recently, is the resumption of these trends, which should go for a new historical high.