Unusually, Decentralized Finance (DeFi) coins such as YFI and AAVE from Yearn.finance have been on the sidelines for the past 24 hours as Ethereum rises along with a bunch of other altcoins.
CryptoSlate market data shows that the best performing cryptocurrencies in the top 100 by market cap are all 2017 era coins that strongly rallied the previous bul22l market but have seen moderate price action since.
XRP itself has risen 35% in the past 24 hours, making it the top performing crypto asset in the top 100 in terms of market capitalization. Also, coins like IOTA, VeChain, Huobi Token, Stellar, Dogecoin, and many more have gained over 20% in the last 24 hours.
What’s interesting is that a majority of these top performers have nothing to do with DeFi, and are more pieces that many would define as “dead” or at least endangered pieces.
The past few weeks have been marked by absurd rallies in DeFi coins, with names like YFI, Synthetix Network Token (SNX), and many more literally rallying for hundreds of percent of their October or October lows. November. But this last day and a few days before, showed that the “dinosaurs” can also rally.
Trader “Hsaka” commented on the ongoing rally in the crypto market:
“The first day in a long time that dinosaurs outperformed BlueChips DeFi. I guess there’s a lot of catching up coming.
This rally represents the first day that these 2017 era altcoins have outperformed Bitcoin, Ethereum, and DeFi coins by as much for many months. It’s unclear if this will continue for now, although many see this as the point where retailers buy names they seem to understand but may not.
Repricing to DeFi
Analysts believe there will eventually be a price revision for DeFi coins, which continue to pile up users in the face of sometimes mixed price action.
Eric Conner, an Ethereum podcaster and developer, recently made the point when he noted that there is about nine times as much capital in “zombie chains” with little on-chain activity (for example, Bitcoin forks) than DeFi coins:
“Zombie chains and DeFi protocols still need a massive relative reassessment. Combined TM of XRP, BCH, LTC, DOT, BNB, ADA: $ 33 billion. Combined MC of UNI, AAVE, SNX, YFI, MKR, COMP: 4 billion dollars on the right… ”
There is no guarantee that the market will be rational in the short term, especially as DeFi coins remain inaccessible, both in terms of availability and intrinsic value, to many.
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