In the past week, a number of decentralized finance (DeFi) projects have skyrocketed, outpacing Bitcoin’s price performance. Among these projects are AAVE, KAVA, COMP. However, many of the rising DeFi altcoins started to pull back on Monday. Here are the details.
Aave (AAVE), a popular DeFi protocol, has gained over 25% in the last seven days, but has fallen by about 0.94% in the last 24 hours. The 43rd-ranked crypto asset by market cap is trading at $64.40 at press time.
Kava (KAVA), a layer-1 blockchain and DeFi platform, is trading at $0.98 at base time. The altcoin is up more than 21% in the past week, but has lost 4.21% in the last 24 hours.
Compound (COMP), a decentralized lending platform, has been the shining star of the past seven days. The altcoin has gained over 41% over the past week. The 99th-ranked crypto asset by market cap is trading at $40.42 at press time. Unlike other altcoins, COMP is up 12% in the last 24 hours.
DeFi coins have gained notable gains, while the leading cryptocurrency Bitcoin has gained more than 13% in the last week. The top crypto asset by market cap is trading at $30,371 at the time of writing.
DeFi is a financial innovation movement that has emerged in recent years with cryptocurrencies and blockchain technology. Aiming to eliminate traditional financial intermediaries, DeFi provides the opportunity to perform financial transactions through decentralized protocols and smart contracts. In this new generation financial ecosystem, lending, borrowing, transacting and many other financial activities can be performed without the need for a central authority.
Although it has been a strong week for many DeFi projects, some crypto analysts are expecting a drop for the nascent asset class. A popular analyst known to the crypto market by the name Capo expects a general altcoin capitulation on Friday that will cause them to lose more than half of their value. told.
Finally, it is important to note that DeFi is still a new field and carries risks due to the volatility of cryptocurrencies. Users should understand the risks when using these protocols and make informed decisions by doing their own research.
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