Historical market trends herald that the mega year could be ripe for chief DeFi tokens to soar high. Whilst Bitcoin struggles to break out of the bottoms, many traders gravitates to see DeFi protocols as a safer place to park their bags. When traders optimism begins switching over to the altcoin market, maximum cash-flows to the side of DeFi.
Especially, chief DeFi protocols such as Yield Finance (YFI), Uniswap (UNI), and AAVE are poised for a massive upswing with a groundbreaking kickstart to 2022. The aforementioned tokens have managed 5x gains in their first supercycle of 2021 and are likely to recuperate now.
Yearn.Finance (YFI) price has taken the DeFi space by storm in Q1 2021 with gigantic gains of more than 500%. However, there reappears to be a similar move as YFI price has fired up the space with over 20% gains from $32.5k to $40.14k in just three days.
In addition, total value locked that indicates healthy network growth between the platform and users has seen an exponential rise in its value by $200 million in just three days. The protocol holds a total value locked worth of $4.1 billion at the press time.
With a massive kickstart to the mega year, YFI price has broken above the 5 month high of $40,068. However, if a large chunk of buyers jump in to trade the asset like in Q1 2021, then the asset would make an interesting move above $50k in the next couple of weeks.
Uniswap (UNI) price has given an incredible breakthrough to DeFi space with colossal gains of over 1000% in Q1 2021. However, the protocol has been slowly rising with the generation of consecutive lower highs since the start of 2022. On the other hand, TVL, which was stable over the past five to six months, has risen from $8.4 billion to $8.75 billion at the press time.
If the UNI price manages to pass the crucial resistance at $20.99 then the asset would experience an exponential price rise. One day chart indicates that there are possibilities of death cross around $18.49, the altcoin would undergo correction to some extent. However, if a large chunk of buyers jumps into purchasing the altcoin then the price would explode by 5x.
AAVE price has taken the entire DeFi space by storm with gains over 500% in the very first quarter of 2021 by surging from just $80 to $520.25. However, reiterating the same the DeFi protocol has made an impressive move by gaining more than $1 billion in just three days.
Along with a clear breakout at $235, the altcoin has taken a leap to $283.42 with substantial gains since the start of the year. Indicators such as RSI and MACD are looking pretty bullish for AAVE price action. If investors continue to show their optimism towards the asset in the next couple of days, then the DeFi token would rise and approach $400.
Collectively, the protocols such as YFI, UNI, and AAVE are the tokens that dawned the DeFi season in 2021. However, there reappears to be an occurrence of an identical trend in 2022 as these altcoins slowly move to newer heights with substantial gains over the past three days. If they continue to break their local higher resistances then 5x gains are not impossible.