Aave leads DeFi higher as crypto shrugs off surging bond market
DeFi tokens, led by Aave, are rising despite broader market pressure from high Treasury yields and falling stock prices. Privacy-focused tokens like Zcash and Dash are experiencing significant declines.
Why it matters
The divergence between DeFi performance and traditional market indicators highlights the volatile and often decoupled nature of cryptocurrency assets.
The bid is arriving despite conditions that have been suppressing risk assets for a week, the 10-year Treasury yield sitting at 5.234% after ending Monday above 5.2%, near levels last seen in 2007, and the 30-year at 5.549% having topped 5.56% on Monday, around a 2004 high.
U.S. stocks fell for a second session on Monday, the Dow dropping more than 300 points and the S&P 500 and Nasdaq Composite shedding 0.8% and 0.9%, with futures mixed on Tuesday morning.
Decentralized finance (DeFi) is driving the move for the second time in a week, with the DeFi Select Index (DFX) gaining 5.0% since midnight, led by lending protocol token aave AAVE $149.48 at 11% and curve dao token CRV $0.3457 at 5.2%. The CoinDesk 80 rose 2.0% against the CoinDesk 5's 1.3%, though the ranking inverts over 24 hours, where the CD5's 1.7% beats the CD80's 0.44%.
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