At the end of last month, when the market took a significant shake and most of the altcoins fell, the profit area appeared to be DeFi for the month. UNI gained over 40% in the last week of September while DYDX generated new ATH.
FUD refuel DeFi?
One report von Chainalysis notes that holders and traders in East Asia are moving their coins in response to Chinese regulatory action. After two of the country’s largest centralized exchanges, Binance and Huobi, were shut down or curtailed, decentralized exchanges (DEXs) like Uniswap, dYdX saw increased usage.
Actually, data from Token Terminal indicates that daily DEX revenue has increased over the past week. At the same time, their tokens also exploded during this time. Notably, dYdX reached $ 4.3 billion in trading volume in the 24 hours from September 26th to 27th, 15% more than Coinbase.
The source: Token terminal
UNI and DYDX “winners” when BTC falls
Grayscale recently added UNI to one of its crypto investment products and allocated 1.06% of its portfolio to the asset. In response, UNI’s TVL (Total Locked Value) rose nearly 10% from September 29 to press deadline.
An interesting trend is that coins like UNI and DYDX tend to be the opposite of the larger market and Bitcoin. Typically the last sell-out after the Chinese FUD.
Another example is the DeFi token flash crash earlier this month when the market recovered better. Additionally, with the consolidation of the larger market, the market appears to have switched to tokens like UNI, SUSHI and DYDX.
The current uptrend in DYDX and UNI prices is also due to macro events like China’s crypto ban. Although Bitcoin price appears to be more sensitive to such FUDs, the market sees DeFi tokens as a more viable option for self-protection.
Indicators for the relocation of DYDX and UNI?
Both DYDX and UNI appear to be slowing down after drawing a lot of attention since late last month. The numbers painted a healthy picture, however, as MVRV (7 days) saw recovery and growth.
UNI saw the largest trading volume candle since the May high for 3 days from September 27th to 30th. DYDX, on the other hand, has seen a remarkable increase in the age of tokens used at the time of going to press, suggesting that a large number of tokens are being moved after prolonged inactivity.
DYDX usage age (purple), DYDX network growth (red), UNI network growth (yellow) | Source: Sanbase
However, since the two tokens show less network growth compared to September, the network still appears to be lacking in growth despite the higher transaction prices. Also, with both consolidating after the recent rally, do they need another macro event or maybe a BTC consolidation to continue rising?
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According to AMBCrypto