Not afraid to take up the DeFi – While Bitcoin stagnates, the tokens of decentralized finance take the opportunity to emancipate themselves and take off. Little by little, historic digital currencies are giving way in the top 10 crypto capitalizations to tokens linked to the DeFi ecosystem.
AAVE exceeds its ATH, the rest of DeFi follows closely
The price of AAVE has appreciated by more than 225% since January 1. This great surge allowed it to surpass its highest level and make its way into the top 20 by capitalization of crypto-assets.
The current bullish phase is driven by the widespread craze for Crypto Code app and the excellent fundamentals of the project. AAVE’s flash loans service exploded barely a year after its launch. The project totals $ 1.7 billion loaned in 2020 .
The project, its loans, and the returns it generates are in high demand, as you can see below with the graph of the total value tied up in the project that keeps growing. Likewise, the AAVE token trading volume has increased fivefold over the past twelve months, reaching nearly $ 1 billion.
The price of Polkadot and Uniswap tokens also appreciated strongly during the month of January. So much so that the DOT is placed fourth in the ranking of crypto-assets by capitalization . Thus exceeding the capitalization of historical digital currencies such as Litecoin or Bitcoin Cash .
DeFi and decentralized exchanges, towards total financial emancipation?
Just a year ago, decentralized exchanges – or DEX – had extremely low volumes . Several projects resulting from the wave of ICOs of 2017-2018 intended to create a DEX, but did not meet the expected success.
However, since this summer the volumes of new DEX have been steadily increasing . While January is not yet over, the volume on DEX is breaking records. For the moment, 40 billion dollars have circulated through the various exchanges.