Sustained retail euphoria coupled with broader market optimism could help DeFi price growth in the short term.
With the global cryptocurrency market capitalization still below the $1 trillion mark, the once-glowing total value locked (TVL) of decentralized finance (DeFi) has also seen a considerable pullback.
Nonetheless, major DeFi tokens such as Uniswap (UNI), Aave (AAVE), and Maker (MKR) continued to post gains on a daily chart amid renewed bullish momentum.
With BTC’s social dominance on the rise, after Monday’s gains, the largest crypto market, including major DeFi assets, saw a surge in price.
A look at the top gainers on CoinMarketCap in the last 24 hours showed that UNI led the market gains with more than 15% daily gains. Apart from UNI, MKR and AAVE also posted high daily gains of 11% and 7.63%.
DeFi TVL is still stuck in the lower range
Despite major DeFi tokens gaining price momentum, there was no significant change in TVL across decentralized finance markets. In fact, the DeFi TVL lost more than 70% of the value in 2022 from January to September.
The TVL stood at $56.15 billion, a loss of more than 70% from the value recorded in December 2021 of $303.8 billion.
According to data released Monday by data aggregation and analytics platform CryptoRank, the TVL in DeFi has plunged 40% in the past 30 days, falling from $106 billion where it was a month ago, to $56 billion dollars.
That said, Maker DAO dominance stood at 13.23%, while Ethereum dominance in the DeFi space continued to grow as it accounted for 59% of all DeFi TVL.
UNI, MKR, and AAVE Gain Ground
Despite the market slump, DeFi tokens often manage to turn a profit when sentiment turns positive. Also at press time, UNI topped the earners’ list on CMC with 17% daily and 21.32% weekly gains.
The recent price reversal shot UNI price above the key resistance level at the $6 mark. The token will see a higher price rejection candle at the $6.6 resistance, where over 47 million UNI are held by 15.9 thousand addresses.
The Global In and Out of Money indicator explained that, after the resistance of $6.6, the next key supply barrier would be at the $9.6 mark, where more than 60 million UNI tokens are held by more than 30 thousand addresses.
AAVE, on the other hand, gained 7.63% on the daily chart as its 24-hour trading volumes surged 17% to $115 million.
For AAVE, once the token reverses the losses recorded in mid-September, the next key resistance would be at the $94 mark.
Lastly, MKR saw a massive surge of over 11% in the last 24 hours, making a parabolic recovery from September’s losses.
In particular, Global In and Out of Money for MKR presented strong resistance at the $942 supply barrier, where over 430,000 MKR tokens are held by around 8,200 addresses.
Furthermore, a steady 26% increase in the new seven-day address change highlighted a more vibrant ecosystem for the DeFi token, as new entities continued to flock to MKR.
Sustained retail euphoria, coupled with larger market optimism, could help DeFi token price growth in the short term, as UNI, MKR and AAVE continue to post gains.
By Audy Castaneda
