{"id":156530,"date":"2021-01-17T15:00:00","date_gmt":"2021-01-17T12:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty\/"},"modified":"2021-01-17T15:00:00","modified_gmt":"2021-01-17T12:00:00","slug":"defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty\/","title":{"rendered":"# DeFi bull run: Why Aave and SUSHI are surging despite Bitcoin price uncertainty"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4133c664aca\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4133c664aca\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty\/#Why_is_DeFi_projects_like_SUSHI_and_Aave_getting_%E2%80%9Cre-rerated%E2%80%9D\" >Why is DeFi projects like SUSHI and Aave getting \u201cre-rerated?\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty\/#Whats_next_for_DeFi\" >What\u2019s next for DeFi?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># DeFi bull run: Why Aave and SUSHI are surging despite Bitcoin price uncertainty    <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>DeFi blue-chips, including Aave (AAVE) and SushiSwap (SUSHI), have been rallying hard in the past several days while Bitcoin is seeing\u00a0range-bound consolidation\u00a0at around $35,000 as of Jan. 17.\u00a0<\/p>\n<p>Both AAVE and SUSHI prices have risen by more than three-fold since December, within merely a month. Investors attribute the bull run of DeFi tokens to the market \u201cre-rating\u201d the major DeFi projects.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/f2fdf9bb-a84d-4f7a-aba4-dbc090b6beee.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>SUSHI\/USDT 1-day price chart (Binance). Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_DeFi_projects_like_SUSHI_and_Aave_getting_%E2%80%9Cre-rerated%E2%80%9D\"><\/span>Why is DeFi projects like SUSHI and Aave getting \u201cre-rerated?\u201d<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The DeFi market has had an incredible run since 2020. The total value locked (TVL) across DeFi protocols has surpassed $22 billion, demonstrating the market\u2019s fast growth.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/385e168e-5bc0-4e0c-a009-f145187bd94e.png\"><figcaption style=\"text-align: center;\"><em>DeFi market cap\/TVL. Source: Digital Assets Data<\/em><\/figcaption><\/figure>\n<p>However, despite the rapid growth, most DeFi protocols were valued at around $1 billion. In contrast, many \u201cOG\u201d altcoins have multi-billion dollar market caps, yet have lower user activity and no cash flow.<\/p>\n<p>DeFi protocols are unique in that they are cash-flow generating. This means platforms like Aave, Synthetix, and Yearn.finance have small fees that can be used to fund the treasury or compensate users that stake their tokens to the protocols.<\/p>\n<p>Based on the fast-growing userbase of most DeFi protocols and the increase in their cash flow, investors said that DeFi protocols are seeing a key \u201cre-rating moment.\u201d<\/p>\n<p>Santiago R Santos, a partner at ParaFi, a DeFi-focused fund based in the U.S. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/santiagoroel\/status\/1349058795016658945?s=20\">said<\/a>:<\/p>\n<blockquote><p>\u201cDeFi protocols creeping up the top 20 is a key re-rating moment. As stupid as it may seem, it&#8217;s like being on page 1 of Google search results. So far, DeFi has captured limited mindshare. It&#8217;s &lt;5% of total crypto market cap. Yet, it has the most usage, innovation &amp; fundamentals.\u201d<\/p><\/blockquote>\n<p>Santos emphasized that it is hard to describe any other asset class that is as capital-efficient, profitable, and fast-growing, like DeFi. He added:<\/p>\n<blockquote><p>\u201cWatch as we go through a fundamental re-rating of DeFi protocols. Point to any other asset class that is as high growth, profitable, and capital efficient as DeFi? I\u2019ll wait.<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Whats_next_for_DeFi\"><\/span>What\u2019s next for DeFi?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Currently, Aave and SUSHI are valued at $2.2 billion and $900 million respectively. Yet, analysts still say that they are both undervalued at these market caps, given the user activity on both platforms.<\/p>\n<p>SushiSwap, for instance, is continuously surpassing its record-high monthly volume. Ryan Watkins, an analyst at Messari, said SushiSwap is on track to quadruple the all-time high monthly volume it achieved last month. Watkins <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RyanWatkins_\/status\/1350484234843152384\">explained<\/a>: <\/p>\n<blockquote><p>\u201cUniswap is on pace to 1.5x is ATH monthly volume set in Sept 2020. SushiSwap is on pace to 4x its ATH monthly volume set last month. This would produce $6.4 million in earnings for token holders.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/a24763aa-6038-40eb-93eb-eca3925fab0f.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>SushiSwap monthly volume. Source: Messari<\/em><\/figcaption><\/figure>\n<p>If the DeFi market continues to grow at the current pace, then major DeFi protocols would see higher cash flows, making them even more undervalued.<\/p>\n<p>Arthur Cheong, a partner at DeFiance Capital, one of the largest DeFi funds in Asia, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Arthur_0x\/status\/1349194137141080065\">said<\/a> on Jan. 13:<\/p>\n<blockquote><p>\u201cGreat piece from Delphi, further reinforcing our argument that Sushiswap is highly underrated is poised for a big re-rating soon.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-bull-run-why-aave-and-sushi-are-surging-despite-bitcoin-price-uncertainty\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# DeFi bull run: Why Aave and SUSHI are surging despite Bitcoin price uncertainty &#8221; DeFi blue-chips, including Aave (AAVE) and SushiSwap (SUSHI), have been rallying hard in the past several days while Bitcoin is seeing\u00a0range-bound consolidation\u00a0at around $35,000 as of Jan. 17.\u00a0 Both AAVE and SUSHI prices have risen by more than three-fold since&#8230;<\/p>\n","protected":false},"author":1,"featured_media":156531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2021-01\/af8f19f6-2828-4b40-a3d4-e66c46b68962.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74937,74868,89215,73785,70918],"class_list":["post-156530","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-price","tag-defi","tag-sushiswap","tag-markets","tag-sushi"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156530","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=156530"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/156530\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/156531"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=156530"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=156530"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=156530"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}