- With a spike in total value locked on DeFi protocols, analysts believe that 2022 will be the year of decentralized finance protocols.
- Aave, Curve Dao and Sushi, among other DeFi protocols, have posted three-digit gains over the past year.
- The bounce in the prices of DeFi protocols has fueled a bullish narrative for 2022.
DeFi protocols have posted three-digit gains over the past year with rising capital inflow, on-chain activity and interest from investors. Analysts have predicted a bull run for Aave, Curve Dao, Yearn Finance and Sushi Swap in 2022.
Analysts predict DeFi rally in 2022
Crypto analysts have noted that DeFi tokens are rallying in response to the increasing on-chain activity and capital inflow in the ecosystem. Institutional investors and large-wallet traders have poured capital into Aave, Curve Dao, Sushi and Yearn Finance.
The four DeFi protocols have posted three-digit growth over the past year. @toptickcrypto, a pseudonymous crypto analyst has predicted further growth in DeFi protocol prices. Alongside spike in prices, there is a spike in number of active users and value locked in the protocol.
Defi coins didn't stop working because of a defi bear market. They just reached really high market caps and growth stalled. When coins appeared with lower caps and higher growth ( $SPELL, $CVX, etc) those coins did well.
— Top Tick Crypto (@toptickcrypto) December 24, 2021
Always opportunity when market cap low and growth high!
Over the past two weeks, Aave price has posted over 50% gains. The AAVE/USD pair has rallied over the past few weeks, breaking out of the downtrend. Analysts believe that in the short-term, an RSI breakout or making $300 the support will imply a continuation of the uptrend.
$AAVE has a lot to prove at this point. Too early to say if "this time is different", price action >$300 is going to be telling. https://t.co/SLaOzsOMTS
— venturefoundΞr (@venturefounder) December 23, 2021
The total value locked, considered as market capitalization has increased several times for Aave, Curve Dao and Sushi Swap. Growth in total value locked is considered a sign of bullish outlook from investors.
Michaël van de Poppe, a crypto analyst and YouTuber has predicted that 2022 could be the year of DeFi tokens.
$AAVE, $CRV, $YFI, $SUSHI.
— Michaël van de Poppe (@CryptoMichNL) December 25, 2021
2022 will be the year of #Defi and the recent, massive bounce has shown the first signs.
Position yourself well.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?