Recent data show that the growth rate and volume of NFT transactions are declining, and digital currency market investors are moving to decentralized financial protocols (DeFi).
to the Report The Coin Telegraph is an important part of the process of maintaining a return on investment in knowing when an asset or a particular segment of the market is showing signs of weakness and when a turnaround is forming between different segments.
This is especially important in a rapidly changing digital currency market, as it may change direction in the blink of an eye, turning digital currency millionaires into depressed investors whose asset values are steadily declining.
Most investors know that the market for non-recurring tokens has increased since July, and for some of the most popular NFTs in the market, such as CryptoPunks, Mutant Ape Yacht Club and EtherRock 6 Or even 7-digit payouts, while sales of the entire OpenSea platform, the largest market for unique tokens, have exceeded $ 4 billion.
While this situation has been very exciting so far, many new projects have been launched on various networks, and the recent decline in trading volume may indicate the desire of investors to move to other segments of the digital currency market.
In the first quarter of 2021, decentralized financial protocols and related tokens were of interest to investors. But interest in the sector waned in March as the iconic tokens market experienced its first major uptrend. It now appears that this trend has begun to change, and profits from non-pecuniary tokens trading are returning to the market for altcoins and decentralized finance platforms.
Here are five criteria that show that a capital shift from a market of non-recurring tokens to defa is taking shape.
Increase in the price of large and small Defay tokens
DeFi Prep is a flagship token in the FTX digital currency exchange and includes a portfolio of 25 digital currencies related to Diffie including Maker, Polkadot, Solana, Curve dao token. Dao Token), Uniwap (Uniswap) and Sushi Swap (SushiSwap).
Market data show that the price of Diff Perp rose 138 percent to $ 5,331 on July 20 (July 29) and peaked at $ 12,771 on September 2.
The increase in the price of Defy Perp to the level of support and resistance of $ 12,500, which was an important level in the increase of the price of this digital currency between February and May 2021 (February 1999 to May 1400), shows that with the decrease in daily trading volume and price caps Unprecedented tokens are the capital of traders returning to the defense ecosystem.
Gradual decline in the price of unparalleled tokens
Since the rapid rise in the price of proverbial tokens was the most important feature that attracted the attention of the general public to this sector, the decrease in price is also a good sign and criterion for judging the general situation of this market. The chart below shows the average daily price floor of unparalleled tokens sold in the market, the average price floor reached a peak of 1.02 Ethereums on August 29 (September 7) and has now dropped to 0.5 Ethereums.
The fact that NFTs and tokens from emerging projects, which also have high trading volumes, are being sold at low prices could be a sign of saturation and a slowdown in the recent uptrend.
Increasing the number of active users and transactions on decentralized platforms
Another measure that shows that the Diffay ecosystem continues to grow is the steady increase in the number of Diffay users over time, as shown by the data from the Dune Analytics platform.
New users who interact with Diffy protocols are likely to be attracted to the stable and hassle-free return on these platforms. Reports show that investors in traditional financial sectors are also interested in what Difai offers.
As this criterion examines the number of unique addresses associated with Diffie protocols, and it is possible that some users may have multiple addresses, examining market conditions has recently become more complex. The longer-term nature of profits in defay, which is mainly through equity, liquidity, or locking tokens in various protocols, has led to a reduction in the number of users who move their assets between multiple wallets and pay high fees for doing so.
The continued trend of new users entering the domain of Difai shows that some people who have earned money from non-duplicate tokens are now looking to lock their capital in Difai protocols and make a profit, while newcomers to the market are more attracted to opportunities that are less risky. have.
Also read: The most comprehensive Defy training; From garlic to onions, decentralized platforms
Ethereum’s $ 4,000 mark marks a turnaround in the market
Another development that could indicate a shift in investors towards defai is the rise in Ethereum prices.
Market data show that the price of Ethereum rose 125 percent from $ 1,706 on July 20, and a recent 23 percent increase from $ 3,134 on August 30 (September 8). It reached $ 4,029 on September 3 (September 12).
Most of the top decentralized finance protocols operate on the Ethereum network platform, and the market-leading altcoin, Ether, is one of the main digital currencies of the Defy ecosystem and is widely used in the stock and purchase of other digital currencies.
Record-breaking total value locked in defy protocols
The final measure that indicates a spin to Difai is occurring is the locked total value rate in all Difai protocols. On September 2, the new record hit a record $ 171.5 billion.
Previous jumps in the benchmark have been largely due to rising bitcoin and Ethereum prices, but the current rise comes as both digital currencies trade below their 2021 peak. This means that the increase in the total value locked in Diffy protocols has been due to the increase in the value of Diffy tokens and the increase in the use of stable coins.
While the boom in the non-recurring tokens market is not over yet, numerous data show that its uptrend has reached an erosion point, and on the other hand, the current uptrend of pennies and defa tokens shows that investors are turning to decentralized finance. , In the early stages.