Amid an ongoing bull run, where the majority of cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, Pepe, Shiba, Solana, and many others, are experiencing massive price surges. The brokerage firm Bernstein published a report predicting an overall recovery in the cryptocurrency market, with decentralized finance (DeFi) taking the forefront.
DeFi’s prominent role in Cryptocurrency Market
Analysts Gautam Chhugani and Mahika Sapra anticipate a significant revival in DeFi, positioning it as the future of blockchain finance. The report highlights that six out of the top ten revenue-generating protocols are DeFi applications, such as Uniswap, Aave, Maker, GMX, Synthetix, and Sushi.
The analysts also acknowledge the challenges faced by DeFi in the previous market cycle, attributing the downfall to unsustainable yields, symbolized by the collapse of the Luna stablecoin. Stablecoins are cryptocurrencies pegged to traditional currencies like the U.S. dollar.
What sets this market cycle apart, according to the report, is the sustainability of DeFi yields. The authors argue that the yields are now genuine and sustainable. With increased regulatory clarity, the report suggests the possibility of global asset managers considering the introduction of a DeFi exchange-traded fund (ETF) and active DeFi funds.
Uniswap, the world’s largest decentralized spot exchange, is highlighted in the report. The analysts note that, based on the current run rate, Uniswap’s annualized revenues could surpass $1 billion. Additionally, the UNI token boasts a floating market cap of $9.3 billion.
Performance analysis of Defi tokens
Currently, Uniswap’s UNI token is trading near 12.8, and in the last 24 hours, it only experienced a slight 1.8% upside momentum. If we look at the performance of the UNI token over a longer period, in the last 7 days, UNI’s price experienced an impressive over 20% upside momentum. Whereas, in the last 30 days, holders of the UNI token gained over a massive 112% upside momentum.
Besides UNI, other DeFi tokens like Aave and Sushi are currently trading near 113.6 and 1.7, and in the last 24 hours, both tokens experienced over 1% and 0.5%, respectively. However, over the longer period, in the last 7 days, both tokens gained over 11% and 10% of upside momentum. Whereas, in the last 30 days, these tokens experienced a price surge of over 35% and 60%, respectively.
