Big growth for DeFi tokens: all the forecasts

Several DeFi tokens this November have recorded a price increase of more than 50%.

After difficult years, and a bear-market that seemed never-ending, the “Trump trade” has also awakened the tokens of decentralized finance protocols. 

The growth of DeFi tokens

The most prominent cryptocurrency in the DeFi world is AVAX of Avalanche.

Its price in the last 30 days has increased by 60%, even though it is now only +5% from the value it had at the beginning of the year. 

The reference token of DEX, UNI of Uniswap, is at +47% in the last 30 days, and at +50% since the beginning of the year. 

There is even a token, OM of Mantra, whose price in the last 30 days has risen by 180%, bringing the gains since the beginning of the year to +6,000%. 

Very good also FTM of Fantom and GRT of The Graph, while the situation is slightly different for example for INJ of Injective. In fact, although in the last 30 days it has recorded an excellent +50%, in reality compared to the value at the beginning of the year it is still at -22%.

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The ongoing dynamic

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The dynamic underway seems to be that of a mini-altseason. 

Everything begins with Trump’s victory in the USA presidential elections on November 5th. 

With that victory, the price of Bitcoin started a bull run that took it from about $70,000 to almost $100,000, before correcting.

Once the upward push of BTC has run out, at this stage, the altcoins took advantage, primarily Ethereum, which started to outperform Bitcoin in the short term.

However, in the case of BTC, it was a breaking of all-time highs, with new records significantly higher than the previous ones, while for many altcoins like Ethereum, it was merely a rebound after many months of suffering. 

For example, the current price of BTC is only 6% lower than last week’s all-time highs, while Ethereum is still at -30% from those of 2021 that still hold. 

Regarding DeFi tokens, AVAX is still at -72% from the highs of three years ago, UNI at -76%, and GRT even at -92%.

The awakening of DeFi

It should be noted, however, that a true awakening of decentralized finance is probably underway. 

Taking the overall DeFi TVL as a reference, a very positive trend is clearly noticeable, which, however, is still far from the peaks of 2021. 

A year ago, the total TVL of DeFi was below 50 billion dollars, but starting from the end of October 2023, it began a rebound that brought it back above 50 billion at the beginning of 2024. 

A first boom occurred between February and March, when it managed to climb back above 90 billion, followed by another small boom in May with the rise above 100 billion. 

After Trump’s victory, who moreover last month launched his own DeFi project, it surged again to well over 110 billion dollars. 

Note that the peak of 2021 was recorded just below 180 billion, so a level still far from the current one, but already much closer than it was just a year ago. 

It is therefore a full-fledged awakening of the world of decentralized finance, which could have the potential to reach peaks well above those of 2021, given that it has only been since 2020 that this sector has been thriving. 

The forecasts on DeFi tokens

Despite all this, it is possible that the ongoing correction in the price of Bitcoin may also lead to a correction in Ethereum and altcoins, including DeFi tokens.

The hypothesis circulating is that BTC could make about a -10% from the highs, while the altcoins could suffer a bit more, always compared to the peaks of these days. 

Among the DeFi tokens that have performed better are CRV from Curve Finance, ENA from Atena, DYDX, and LDO from Lido, and they might also be the ones with the largest percentage pullbacks. 

The tokens of DEX, such as Uniswap, PancakeSwap, and SushiSwap, also performed well after several months of difficulties. 

It should nevertheless be remembered that these are largely rebounds after a long and deep bear-market, and while this somewhat dampens optimism, on the other hand, it indicates that potentially in the medium term they could still perform well.