- DeFi ecosystem’s total value of assets locked has climbed to $105 billion on Wednesday.
- DeFi protocols RUNE, RBN, AAVE, CAKE and MKR have noted double-digit gains in prices.
- The narrative of DeFi tokens sees a resurgence as an ancillary to Ethereum and its Dencun upgrade.
DeFi protocol tokens see double-digit gains on Wednesday as the Dencun upgrade goes live on the Ethereum mainnet. Ethereum’s key technical update has resulted in a resurgence of the DeFi narrative.
THORChain (RUNE), Ribbon Finance (RBN), AAVE, Pancake Swap (CAKE), Maker (MKR) prices have climbed in double digits on the daily timeframe.
Also read: Ethereum Layer 2 locks nearly $40 billion in assets as Dencun upgrade looms
DeFi tokens see massive spike in prices
The Ethereum Dencun upgrade on Wednesday has fueled several beta plays such as staking, restaking, and DeFi protocols. According to data from DeFiLlama, the Total Value of assets Locked (TVL) in DeFi reached $105 billion on March 13.
TVL of DeFi protocols. Source: DeFiLlama
The spike in TVL has been accompanied by double-digit price rallies on the daily timeframe, as seen on CoinGecko.
DeFi tokens and their 1H, 24H, 7-day gains. Source: CoinGecko
AAVE price climbed 14% in the past day. The DeFi token is primed for further gains, likely to revisit its May 2022 peak of $162.20, a rally of nearly 9%.
AAVE price could rally 9%
AAVE price is currently in an uptrend. The DeFi token climbed to its 2024 high of $153.72 on Wednesday after nearly 21 months. AAVE price could sweep the Fibonacci retracement of 50% at $138.36, which lies close to the midpoint of the Fair Value Gap marked in the chart below at $137.32. AAVE price could dip below the 50% Fibonacci retracement, once it sweeps support, the price is likely to return to the 2024 peak of $153.72 and rally towards the May 2022 high, a target of $162.20.
The bullish thesis is supported by the green bars on the Awesome Oscillator (AO), which signals that there is positive momentum and the uptrend is likely intact. The Relative Strength Index (RSI) reads 68.19, the value is below 70, meaning AAVE is not currently overvalued.
AAVE/USDT 4-hour chart
A candlestick close below $138.36, the 50% Fibonacci retracement level, could invalidate the bullish thesis for the DeFi token. AAVE price could find support at $135.44, the lower boundary of the Fair Value Gap.
