Aave is one of the top DeFi tokens posting massive price gains as Bitcoin meets resistance at $38,000
DeFi tokens are surging as investors increase the amount of capital locked into the sector, chasing short-term gains.
Maker (MKR) is up 34%, trading around $2,258, and could climb further if the bullish momentum seen across the sector continues into the weekend.
Compound (COMP) is another token recording significant daily gains. COMP/USD jumped 24% in the last 24 hours to an intraday high of $484, bringing weekly gains to 96%. Elsewhere, Synthetix (SNX) rose more than 15%, trading above $21.
AAVE/USD rises on increased accumulation
Aave (AAVE) is among the biggest winners today, with AAVE/USD up about 22% as bulls push toward a near $500 resistance. This move follows an intraday high near $547 on Binance.
As AAVE surged to test fresh highs, analysts at Santiment noted a significant increase in whale accumulation. According to the analytics platform, the rise in holdings among high-net-worth investors may be fueling AAVE/USD’s rally as the DeFi sector overall heats up.
“DeFi is very much alive in crypto, as AAVE surged to a +33% gain over the last day. AAVE whales — which we estimate as addresses holding 1,000 tokens or more (~$397k+ USD) — grew from 266 to 327 addresses over the past month, helping power this rally.”
Daily chart of AAVE/USD. Source: TradingView
More than $34 billion locked in DeFi
Data provider DeFi Pulse reports that investors have locked a record $34.1 billion into decentralized finance projects. Total value locked (TVL) in liquidity pools rose from $29.58 billion on February 4 to roughly $5 billion higher within 24 hours.
Aave recorded the largest 24-hour TVL increase, adding 13% more value locked in smart contracts. Aave’s TVL now stands at $5.59 billion, slightly behind Maker, which still leads overall figures with $5.89 billion (approximately 17.28% of all TVL).
DeFi index chart showing a strong increase in TVL. Source: DeFi Pulse
The positive outlook for DeFi follows Bitcoin’s failure to break through the $38,000 level once again.
At present, BTC is struggling to hold near $37,500, and momentum toward previous highs appears to have cooled. Bitcoin’s market dominance has also fallen from highs near 73% reached in early January.
At the time of writing, Bitcoin dominance sits around 60%. If BTC/USD continues to struggle or decline, the market could see increased buying pressure shift toward DeFi. That dynamic could reverse, however, if the number-one cryptocurrency begins a strong upward move and capital rotates back into Bitcoin.