The slip in BTC and ETH markets continued on Tuesday, driven by a poor open in legacy markets such as gold and oil. The leading crypto slipped momentarily below $10K while the ETH price pushed lower. On the contrary, top ETH- based DeFi coins embarked on a healthy recovery after a severe downtrend of 30-50% for most prominent altcoins in the past week.
Among the top gainers in DeFi is Aave (LEND), which surged by over 15% in the past 24 hours. The LEND/USD pair is trading at $0.6473 during press time.
LEND/USD chart by Tradingview
Other coins that have bounced include Compound, Yearn.finance, Ren, and ThorChain.
DeFi Coins Benefit from Increased Adoption in China
The ongoing rally of most DeFi coins could be linked to the increasing interest in decentralized finance among Chinese citizens.
On Sep 2, crypto enthusiast Cole Kennelly highlighted that the number of WeChat searches for DeFi had hit record highs.
He found nearly one million unique searches for the English term “DeFi,” suggesting that its growth is starting in China.
Other factors may also influence the DeFi rally, according to the founder of Mechanism Capital, Andrew Kang.
He recently commented on the DeFi sector’s long-term trend, suggesting that smart money is starting to trickle into the space.
“Smart money is starting to trickle in, with a lot of peripheral money potentially snowballing in after. DeFi development is hitting an inflection point,” Kang tweeted.
However, according to Jacob Franek, the founder of analytics firm Coin Metrics, this impressive growth may be short-lived.
In a recent blog post, Franek argued that excessive transaction fees on ETH could place a limit on how far DeFi coins can rally.
BNB Price Up by 5%
As the rest of the crypto and stock markets slump, the Binance coin (BNB) is gaining bullish momentum.
According to CoinMarketCap, the eighth-largest coin is above the $22.80 resistance as it pushes towards $24.00.
At the time of writing, the BNBUSD pair is up about 5% at $23.55. The next key resistance stands at $25.00, above which the BNB price could attempt a new multi-week high near $25.60
BNB/USD chart by Tradingview
