DeFi “Blue-Chips” Lead Sector Rebound as Smaller Tokens Underperform

DeFi “Blue-Chips” Lead Sector Rebound as Smaller Tokens Underperform

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The DeFi sector has been on the up and up throughout the past few weeks, with the post-Summer downtrend first reversing earlier in early-November when Yearn.finance’s YFI token bottomed out at $7,500 and saw a massive overnight surge up towards $18,000.

From this point forward, the cryptocurrency has been climbing higher every week, showing signs of strength and creating tailwinds for the rest of the market.

YFI wasn’t the only “blue-chip” sector benchmark that reversed its downtrend earlier this month, as many other major tokens rallied in tandem.

This sector-wide movement was bolstered by the strength seen by Bitcoin, Ethereum, and the rest of the cryptocurrency market.

ETH’s rise has been particularly impactful for smaller DeFi assets that gain most of their trading volume from Uniswap, as their 50/50 pools are denominated in Ethereum.

One investor is now noting that although these higher-beta DeFi assets have been widely expected to outperform the rest of the market, they are lagging far behind the supposed “benchmark” tokens within this sector.

DeFi Market Closely Tracks Ethereum’s Price Action 

Ethereum has been guiding the