Crypto Analyst Expects Ethereum and DeFi to Go on a “Stupid Run”
The decentralized finance sector has posted massive gains throughout the past week, with all the “blue-chip” tokens seeing explosive momentum as bulls flood back into the embattled fragment of the crypto market at full speed.
This rebound first began when DeFi darling Yearn.finance’s YFI token hit lows of $7,500, at which point it incurred some massive momentum that sent it skyrocketing towards highs of $18,000.
It has since stabilized and is trying to post a high time frame close above this crucial level. If firmly broken and held above over an extended period of time, it could provide a base for it to grow upon that allows it to set fresh all-time highs.
In tandem with the price spikes seen by many crypto tokens within the ecosystem, liquidity providers’ yields on decentralized trading platforms have also rocketed.
This has justified the price movements seen by DeFi tokens and could create a tailwind to lift them higher.
One trader is now noting that he expects DeFi crypto assets to go on a “stupid run” in the near-term as the rest of the market shows continued strength.
He believes that the stability currently seen by Bitcoin, and a massive Ethereum rally, will incubate this next movement.
Crypto Market Stability Aids DeFi Rebound
The rebound seen throughout the larger DeFi tokens as of late can be seen while looking towards the DeFi perpetual index on FTX, which tracks the value of a handful of the top projects within the sector.
This contract bottomed at lows of $1,400 a couple of weeks ago and is currently trading at $2,160.
At its peak in late-August, the DeFi index reached highs of $3,500. Although it has a way to go before it reclaims these high, the recent lows are looking like a long-term bottom.
Analyst: DeFi Tokens Could Soon Rocket Higher
One analyst explained that he believes DeFi tokens are on the cusp of rocketing higher in the near-term, which will be incubated by Ethereum seeing a “stupid run.”
“Right now there is broad market strength in Defi blue chips, ETH, and Bitcoin. ETH looks like it wants to go on a stupid run. Send this and SNX YFI RUNE AAVE UNI all go bonkers to say the least,” he said.
Image Courtesy of Cantering Clark.
Where Ethereum trends next will undoubtedly influence the broader DeFi market. Any continued strength could send smaller tokens rocketing higher.
Featured image from Unsplash.
Pricing data from TradingView.