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Decentralized finance (DeFi) tokens have always followed the movement of Ethereum closely. This is why whenever the digital asset has been on the rise, the prices of other DeFi tokens have grown rapidly too. This is the case now as the crypto market has entered another recovery trend. Bitcoin has once more settled above $20,000, triggering another relief rally for the crypto market.
Ethereum Breaks Above $1,500
The price of Ethereum has gone on another run that has seen it break above $1,500. The last week has seen the price of the digital asset decline significantly. Eventually, it had fallen to $1,420, the lowest point so far in August.
This recovery has put it well above the 50-day moving average, cementing a bullish trend for the digital asset in the short term. Additionally, Ethereum has been one of the only few cryptocurrencies in the space that has been able to turn around its sell-off trends as demand grows for it.
The impending ‘Merge’ has also been a big factor in the recovery of ETH’s price over the last few months. Although a good portion of the hype has died down during this time, ETH is still propped up by the demand that came with the announcement.
As it stands, ETH has regained support just above $1,500 and faces real resistance at around $1,600. If momentum continues, ETH is likely to test this point before the trading day is over.
DeFi Tokens Follow Suit
Ethereum’s recovery has also triggered a recovery in the prices of other DeFi tokens. The leading smart contract platform has rallied almost 10% in the last 24 hours, dragging the rest of the DeFi market with it.
Going down the list, BNB has followed with a 5.75% gain this time. Interestingly, it is not the highest in terms of gains. That title belongs to Avalanche, which has added 13.19% in the last 24 hours to break above the $20 price point.
Others include Cardano with 4.68% gains, Polkadot with 5.39% gains, and Solana with 7.55% gains. Polygon had gotten to a pretty good point in terms of price, too, in recent weeks and is one of the only few digital assets showing green on the 24-hour and 7-day charts.
DeFi TVL has not grown much despite this, though. In the past day, it is up $2 billion to be sitting at the $60 billion mark. This accounts for a 3.77% growth in the last 24 hours.
Featured image from Finance Magnates, chart from TradingView.com
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