Recently, there’s been a change in the flow of capital in the crypto market. Funds that were previously going into AI tokens have now shifted towards DeFi tokens. This shift has given a boost to cryptocurrencies like Uniswap (UNI) and Aave (AAVE), causing their prices to rise significantly.
While AI tokens were grabbing attention in the crypto world over the past few weeks with soaring values, the focus has now turned to DeFi in the last few days.
Shift in Crypto Trends: From AI to DeFi Tokens
Just a few days back, AI tokens like Worldcoin (WLD) saw a surge in interest, with a remarkable gain of over 90% in just a week. This surge was largely fueled by the launch of OpenAI’s Sora platform, generating considerable hype around AI tokens.
However, the spotlight quickly shifted to DeFi tokens in the following days. Popular crypto trader Daan Crypto Trades highlighted this shift in a recent tweet, indicating a noticeable flow of capital from AI tokens to DeFi tokens.
Source: X
This change in sentiment was reflected in the price action as well, notably with Uniswap demonstrating strong performance. The DeFi token’s price surged by more than 65% within a single day, propelling it to join the ranks of the top 20 cryptocurrencies by market capitalization.
To gain further insights into the performance of these DeFi tokens, we delved into their weekly performances.
DeFi Tokens UNI and AAVE Experience Mixed Fortunes
In addition to Uniswap (UNI), Aave (AAVE) also showed encouraging signs, with its value climbing by more than 4% in the past week. As of the latest update, it was trading at $98.14, boasting a market capitalization exceeding $1.4 billion.
Surprisingly, despite the price surge, bearish sentiment surrounded AAVE, indicated by a drop in its Weighted Sentiment following a spike on February 22, 2024. Furthermore, its exchange outflow decreased last week, suggesting reduced buying pressure.
However, Maker (MKR) painted a different picture, experiencing a decline of over 4.5% in value over the past week. CoinMarketCap data showed MKR trading at $2,030.17, with a market cap exceeding $1.8 billion at the time of reporting.
Source: Santiment
The recent data suggests that the bull rallies of UNI and AAVE have come to a halt. In the last 24 hours alone, UNI witnessed a decline of more than 13%, while AAVE’s value dropped marginally.
With the spotlight on DeFi, it remains intriguing to observe whether the excitement surrounding the sector will spark another bull rally for these tokens in the coming week.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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