Top DeFi Coins Maker, Aave, and YFI Correct 10% as ETH Slides
Top decentralized finance (DeFi) coins have undergone a severe correction over the past day. Leading names such as MakerDAO’s Maker (MKR), Aave’s AAVE, Yearn.finance’s YFI, amongst others, are down 10 percent in the past day.
Bitcoin, by comparison, is only down by approximately 2% in the past day, having fallen from the low-$19,000s to $18,800 now. Ethereum is also only down by a few percent.
The drop in the DeFi market comes in the face of strong fundamental trends. First and foremost, Ethereum 2.0 launched this past week, with this new chain garnering over 1,000,000 ETH in deposits. Further, the total value locked in the DeFi space continues to push to new all-time highs.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
Aave Undergoes Crucial Upgrade
The drop in these coins comes in the face of positive news events pertaining to top protocols in the DeFi space.
Yesterday, Aave announced that it is releasing the second version of the protocol. A company document obtained by CoinDesk indicates that this new version will include an array of new features, including collateral swapping, which will allow users to easily switch the collateral types backing their loans at a low transaction cost:
“Collateral swapping can be a useful tool to avoid liquidations. If the price of your collateral starts to fall, for example, you can simply trade it for a stablecoin so you don’t have to worry about price fluctuations and potential liquidation.”
Many are expecting this upgrade to bring Aave and its native token to the next level. The coin already set new all-time highs the other day.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Yearn’s Mergers
Yearn.finance is also seeing fundamental news events. Namely, the leading DeFi protocol is announcing mergers with other protocols that should boost usability.
“As Sushi focused on expanding their AMM ecosystem, and as Yearn focused on expanding their strategies, more and more overlap became apparent, Yearn needed custom AMM experiences for their strategies, and Sushi started pushing the boundaries of yield and money markets. With these overlaps, more and more work started to become mutualistic, and at this point, it makes to take the relationship to the next level.”
Many expect these moves to benefit the DeFi ecosystem by injecting more color and usability into this developing space.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Top DeFi Coins Correct Maker, Aave, and YFI Correct 10%
OhNoCrypto
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Nick Chong, @KhareemSudlow