Looking at the market fluctuations in recent days, especially in the last 24 hours, we can clearly see the prominence of the DeFi group, represented by AAVE. From the bottom formed since early April until now, AAVE has recorded a growth rate that is double, which is no small number in a period when the market is still quite quiet. More importantly, it is not an unusual surge, but a sustainable and stable upward trend.
Observing the price chart, we can see red candles appearing, but they are not long, indicating no fierce struggle from the selling side. On the contrary, the buying force is steady and absorbs well, with the accumulation price range nearly having no long wicks, showing that the buying side has almost absolute dominance and is controlling the game. The trading volume is also not decreasing but gradually increasing, further reinforcing the hypothesis that money is beginning to return to DeFi.
Not only AAVE, but a series of other names in the DeFi system are also beginning to show positive movements. CRV (Curve), after a long period of silence, has also shown slight signals of recovery. ONDO, NEXO, and especially JUP, a typical representative of DeFi on the Solana system, are all showing a gradually recovering trend, but clearly.
The inflow of money into DeFi is currently at a low point, even equivalent to the inflow of layer-2. According to the overall money flow index of the DeFi group, which peaked at 160 points in mid-December last year, it is currently hovering around 72 points, which means it has decreased by more than 50% from its peak. While many tokens have somewhat recovered from the latest adjustment, the DeFi group is still at historically low levels.
For those looking for opportunities in this market, DeFi is facing a phase that can be called the calm before the storm. When top coins show positive signs, money is gradually flowing into the decentralized finance group; is this the right time to accumulate?
What are the opinions of the community members? Are we witnessing a slight recovery before DeFi truly returns stronger in the next growth cycle? I really hope to receive more perspectives from everyone.
