Over the past week, the decentralized finance (DeFi) sector has seen a surge in performance, with several projects outperforming Bitcoin’s already bullish price action. However, some of these DeFi altcoins experienced a retracement on Monday.
One such project is Aave (AAVE), a lending and borrowing DeFi protocol. In the past seven days, Aave has seen a 27% increase in value, but it is down by nearly 1.6% in the past 24 hours. Currently ranked 46th in terms of market cap, Aave is trading at $65.98.
Kava (KAVA), an interoperable layer-1 blockchain and DeFi platform, has also seen positive gains in the past week. With a 24% increase in value, Kava is priced at $1.00. However, in the past day, it is down by 4.6%.
Another DeFi project that experienced significant growth is Compound (COMP), a decentralized lending platform. With a 41% increase in the past week, Compound is currently trading at $40.29. In the last 24 hours, it has seen a 4.43% increase in value. Compound is currently ranked 126th in terms of market cap.
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In contrast to these DeFi projects, Bitcoin has seen an increase of over 13% in the past week and is trading at $30,449 at the time of writing.
Despite the strong performance of DeFi projects, some analysts remain bearish on the nascent asset class. Pseudonymous trader Capo, with a significant following of 766,600 Twitter followers, expressed his belief in an overall altcoin capitulation, predicting that altcoins could lose more than half of their value.
Another crypto analyst, Benjamin Cowen, also warned about the future of altcoins, stating that the altcoin reckoning will continue. These predictions suggest a potential downturn for the DeFi sector.
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