The past week brought a total blood bath for the DeFi tokens where some tokens lost almost 50% of their value. While analysts predicted that tokens will drop further, the latest gains have taken everyone by a surprise.
At the time of writing, most of the tokens are hovering with an intense recovering. Despite the DeFi market’s recovery, the crypto-market is also trading in the green zone after stepping in the bullish zone. Ethereum alone is rising by more than 4% after dropping from its peak of $490 to $320 a few days ago. The DeFi tokens are up by 19% and 32 out of 37 tokens are rising from 3% to 33%, according to the Messari report.
Tether’s role in the rally
According to the CTO at Tether, Paolo Ardoino, USDT somehow attributes to the latest gains. He quoted:
“The fast settlement, deep liquidity, low fees, and stable price associated with USDt have created unique opportunities for lending products, such as the Aave and Compound protocols, with USDt offering some of the best and most enticing yields on these platforms. With Tether’s support to DeFi, it has become the first stablecoin to leverage the innovation released in Algorand 2.0 and provide instant confirmation, micropayments, and automatic wallet support. Tether will also continue supporting Layer-2 scaling solutions to reduce congestion on Ethereum. For example, Tether recently went live on the OMG Network transport layer, and will soon be adding support for ZK-Rollups.”
DeFi tokens perform flourishingly
The daily chart shows that SushiSwap (SUSHI) is up by 27.8%, Loopring (LRC) rising by 29.9%, Aave (LEND) rising by 29.4%, Yearn Finance (YFI) is rising by 37.6%, and Swerve is hovering the chart. Ampleforth (AMPL) which ranks at the 18th position is noticing a rise of 84.5%, Solona (SOL) is rising with a 47% gain.
The rally of Yearn Finance has set it on an intense zone where more growth is imminent. Moreover, Annual Percentage Yield (APY) which initially was a failure is up by 0.1%, probably pushing the rally further. Currently, the DeFi tokens are surpassing Ethereum’s wider ecosystem as 136 out of 178 ETH backed tokens rallying in the green zone with impressive gains.