Cryptocurrencies opened the week jumping big, a reversal from a weekend market dive.
- Yearn.Finance (YFI) trading around $50,951 as of 21:00 UTC (4 p.m. ET). Jumping 76% over the previous 24 hours.
- Ether (ETH) trading around $2,668 as of 21:00 UTC (4 p.m. ET). In the green 34% over the previous 24 hours.
- Ether’s 24-hour range: $1,970-$2,668 (CoinDesk 20)
- Bitcoin (BTC) trading around $39,801 as of 21:00 UTC (4 p.m. ET). Gaining 19% over the previous 24 hours.
- Bitcoin’s 24-hour range: $33,141-$39,801 (CoinDesk 20)
DeFi tokens explode
The decentralized finance, or DeFi, sector of the cryptocurrency market is making major performance jumps Monday. The token of lending protocol Yearn.Finance is up over 76% as of press time. In addition, UNI, the token of the leading decentralized exchange by volume, Uniswap, has climbed 54% as of press time.
According to charting software TradingView, so far in 2021 both yearn and uniswap have made triple digit percentage gains, but volatility in the market has actually sapped some of their juicy returns. For example, in early May Uniswap was up over 700% before a precipitous fall, then rebounded with Monday’s bull crypto market.
“DeFi tokens, like most altcoins, are lower market capitalized, possess lower liquidity and thus have higher volatility,” said Brian Mosoff, chief executive officer of investment firm Ether Capital. “This past week saw a sharp decline, with these types of assets being hit harder than blue-chip crypto, such as bitcoin and ether. But as things seem to be rebounding the lower liquidity leads to a faster bid up on price.”
DEX volumes at record in May
The trading volume numbers for Ethereum-based decentralized exchanges are hitting record highs in May, with the total trading tally well over $100 billion, according to data aggregator Dune Analytics. Leading the way is bellwether Uniswap with a whopping $61 billion in volume this month.
Juicy opportunities in the crypto market this month have led to recording trading volumes on centralized exchanges as well, with the highest amount of bitcoin changing hands on those venues just last week. Large-scale capital inflows continue unabated and if anything, are now able to benefit from these slightly softer spot prices before all the weak hands are shaken out and we solidify a floor for this volatility.
John Willock, CEO of crypto custody provider Tritum, says lots of new entrants during this bull cycle flooding into the market is what’s causing record volume numbers across the board.
“Large-scale capital inflows continue unabated and if anything, are now able to benefit from these slightly softer spot prices before all the weak hands are shaken out and we solidify a floor for this…
Read More: Market Wrap: DeFi Token Yearn.Finance Pops 76% as Bitcoin, Ether Make