The decentralized finance (DeFi) market experienced a sharp correction after the Bitcoin (BTC) price failed to exceed $ 41,000.
Analysts, on the other hand, think profits from large DeFi tokens have been transferred to Bitcoin.
What’s next for DeFi?
Both the leading DeFi tokens and small-to-market cryptocurrencies tried to show improvement compared to Bitcoin over the weekend.
Leading DeFi assets include Aave (AAVE), SushiSwap (SUSHI), Uniswap (UNI), Maker (MKR), Compound (COMP), and Synthetix (SNX).
Major DeFi tokens with a smaller market value include Alpha Finance (ALPHA), Yearn.finance (YFI) and 0x (ZRX).
The main reason behind the correction in the DeFi market is the transfer of profits from these tokens to BTC while the Bitcoin price is experiencing a pullback.
This trend has increased the selling pressure on DeFi tokens.
However, the cryptocurrency market is moving fast, and the launch of CME Ether futures in particular could change market dynamics rapidly in the coming days.
On the other hand, if the Bitcoin price exceeds $ 40,000 and consolidates between $ 41-42,000, a new DeFi rally may be triggered.
For this to happen, Ether needs to catch up with Bitcoin and regain momentum above $ 1,700 in the short term. Ether is performing lagging behind Bitcoin in the current situation.
ETH’s conversion of $ 1,700 to support will play a key role in the destiny of the DeFi market for the foreseeable future.