DeFi altcoin projects are rapidly expanding their user base thanks to the high earnings they offer. However, reliability and long-term liquidity remain the main focus of these projects. To effectively trade tokens in DeFi, decentralized exchanges are required. Many of them are raising seed money by releasing cryptocurrencies to spur the growth of the DeFi network.
- 1 These 3 DeFi altcoin projects have huge earning potential
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These 3 DeFi altcoin projects have huge earning potential
Most of these decentralized exchanges reward investors with perks for their capital. Thus, they encourage participation with high returns and attract liquidity. However, investors continue to search for DeFi altcoin projects that will offer them the highest return. AmkNews.com In this article, we have compiled 3 altcoin projects that are likely to offer big gains in the crash.
Aave is a notable DeFi altcoin project with a market cap of $866 million. The smart contract in its module offers instant access to create DAI without sending collateral to protocols. However, MakerDAO, behind the DAI stablecoin, has taken several steps as concerns over loans have surfaced. Accordingly, MakerDAO has decided to temporarily block Aave’s DAI Direct Deposit Module. With the blocking, Aave lost the advantage of generating DAI at will. Now he can only pay off his current debts.
When we look at the AAVE coin price, we see that it could not break the $74.28 resistance level. After that, the DeFi altcoin returned to the critical support level of $51.8. AAVE must break the $74.28 resistance level to rise once again in the medium term. Staying above this critical resistance has the potential to push the price higher to $91.70.
During the market recovery, DeFi altcoin COMP performed quite well. So much so that it got much better results than other altcoins and investors’ expectations. In fact, Compound was one of the altcoins that started to rise much later than its competitors. However, thanks to bullish indicators in the overall market, it managed to register an increase of 103.3%. Let’s also mention that this increase took place in only one week.
When we look at the price forecast of COMP, we see that it could not hold the 56.50 support level. Accordingly, the mentioned level will act as a resistance in the future and the price will not be able to go beyond this resistance. The compound could revisit the $34.50 or $16.30 support levels. However, it is also possible for the bulls to break above the $56.50 resistance level and close. In this scenario, COMP will target the key $78 and $97.80 resistance levels.
When we say DeFi altcoin, Yearn.Finance is one of the most known and popular projects. Yearn takes a token deposit from users to maximize profits. It then transfers money between various protocols. DeFiLama, which collects DeFi data, says YFI holds $548 million in locked-in total value (TVL). This is considerably less than the previous level of $5.7 billion. The project lost more than 90% of its value last year. However, it should be noted that the cryptocurrency is still under development.
The four-hour chart shows YFI price moving towards the uptrend. However, despite the rise, it failed to break the critical $7,022 resistance level. The Relative Strength Index (RSI) has bounced above all moving averages. Thus, it has reached the heavily overbought region. DeFi altcoin seems to make a trend return in a short time. If this happens, the next important support for the price is found at $4,680. The resistance must be broken for the short-term bullish momentum to continue. If YFI breaks the resistance at $7,022, the next important level of resistance is at $11,045.
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