Crypto Price Analysis July 13: DCR, CRV, AAVE, FTM, BAT

Key Insights:

  • Decred led the rally with a 17% rise in 24 hours.
  • Fantom and Basic Attention Token were among the ones to note a decline still.
  • Bitcoin and Ethereum continued to trade at $19k and $1k.

The crypto market did not see a lot of change throughout the day, remaining planted at $854 billion as the altcoins balanced out each other’s ups and downs.

The king coin and the altcoin king, which were already on a downtrend, further declined today but did not slip below $19k and $1k.

Decred (DCR)

DCR was one of the best performing coins of the day, going up by 24.09% during the trading hours to trade at $25.67. Within a single day, the altcoin recouped all that it lost in the last two weeks.

The Awesome Oscillator highlights increasing bullishness at the time of writing, so DCR might be able to keep up with this rise.

Curve Finance (CRV)

CRV, following in the footsteps of DCR, flipped the active downtrend and rallied by 15.86% today, even recovering $1 in the process. If CRV closes above the current trading price of $1.01, it can flip $1 into support.

And by the looks of the Bollinger Bands, the chances of the same happening seem positive as the candlestick is above the bias.

Aave (AAVE)

The DeFi token managed to rise by 12.68% after declining by 17.03% in the last couple of days. Trading at $76.79, AAVE is yet to recover even half of the losses it experienced in June.

However, it does have the investors’ support, as visible by the uptick in the Chaikin Money Flow highlighting consistent inflows.

Fantom (FTM)

FTM followed the other altcoins as it barely moved, keeping its price down by 3.6% in the 24-hour span. Trading at $0.23, the DeFi token is still bearing the brunt of the bears.

From here on, a drop in the prices is possible since the MACD is indicating the arrival of a bearish crossover on the charts.

Basic Attention Token (BAT)

BAT made no progress in recovering the losses of this week as the altcoin traded at $0.36. Down by 18.88%, BAT is yet to find support to rally.

Additionally, the Relative Strength Index (RSI) also flashed bearish signs at the time of writing as it slipped into the bearish zone.

Crypto Price Analysis July 5: SNX, COMP, LTC, GMT, BAT

Key Insights:

  • Synthetix was one of the worst performers of the day, marking an 8% decline.
  • STEPN (GMT) stood on the other end of the spectrum, up by 6.48%.
  • Bitcoin and Ethereum slipped to $19k and $1k once again today.

With the entire market in red, most of the altcoins kept following the broader market cues, while some other rebelled. Bitcoin and Ethereum sadly fell into the former category trading at $19k and $1k, respectively.

Synthetix (SNX)

Trading at $2.58, SNX was one of the leading altcoins today to paint red on the charts. Declining by 9.12%, the cryptocurrency wiped out half of the 27.63% rally from the previous 48 hours.

At the moment, the altcoin is somehow maintaining the bullishness it obtained from the 109% rise, saving Awesome Oscillator from falling below the neutral line.

Compound (COMP)

Following in the footsteps of Synthetix, Compound also noted a 7.89% fall in price, however, investors will not be affected too severely in the case of COMP.

This is because it is still sustaining most of the 92.22% rally from June, and in addition to that, the candlestick is keeping above the bias of the Bollinger Bands, which will help it in continuing the price rise.

Litecoin (LTC)

The silver to Bitcoin’s gold, Litecoin, adhered to the broader market trend sinking by 8.18%  in the last 24 hours. This further added to the 18% decline LTC has observed in the previous ten days.

In addition to this, the streak of inflows it had been noticing since the mid-June 35.4% rally finally came to an end 48 hours ago when Chaikin Money Flow market outflows.

STEPN (GMT)

The DeFi fitness protocol was observed treading against the active market trend and climbed by over 7% in the last 24 hours.

The 8.82% rise in 2 days only makes up for half the 18% drawdown from the previous week, but the same is still keeping the 66.5% rally from June intact.

Furthermore, with the MACD keeping away from a bearish crossover, for now, GMT might be able to continue rising towards $1.

Basic Attention Token (BAT)

BAT kept GMT company with an 8.52% rise bringing the coin to trade at $0.43. The coin recently fell by 14.46%, however, the surge that followed helped BAT recover to the price point it was at after the 52.47% rally.

The Relative Strength Index (RSI) is also keeping above the neutral line in the bullish area, exhibiting no selling pressure on the altcoin for now.

Bitcoin and ETH Price Prediction: Support Intact, Why MATIC Rally Could Fade

Key Insights:

  • Bitcoin jumped to $20,450 before correcting lower.
  • Ether (ETH) is trading above the $1,085 and $1,070 support levels.
  • MATIC surged over 10% but faces a major hurdle near $0.55.

Bitcoin

In the past few sessions, bitcoin price found support and climbed above the $19,750 resistance. It even broke the $20,000 resistance and the 21 simple moving average (H1).

However, the bears defended the $20,450 zone. Recently, there was a downside correction below the $20,000 level and the 21 simple moving average (H1). The price is now trading near the $19,350 support and a connecting bullish trend line on the hourly chart.

Bitcoin BTC Hourly Chart
BTC Hourly Chart by FXEmpire

If bitcoin price stays above $19,350, it could rise towards $19,750. The first major resistance is near the $20,000 level. The main resistance sits at $20,450, above which the price could start a steady increase.

Ethereum (ETH)

ETH also followed a similar pattern after it formed a base above the $1,050 level. There was a decent increase above the $1,085 resistance and the 21 simple moving average (H1).

There was a clear move above the $1,130 resistance level before the bears appeared near $1,170. Recently, ether price corrected lower and traded below the $1,130 level. The bulls are now protecting the $1,085 support zone.

Ether ETH Hourly Chart
ETH Hourly Chart by FXEmpire

If there are more downsides, it could find support near $1,070. On the upside, the price might struggle near $1,135. The next major resistance is near the $1,170 level, above which the price could rise towards the $1,250 level.

Polygon (MATIC)

MATIC found support near the $0.3200 level after a massive drop from well above the $1.10 and $1.00 support levels.

The price settled below the $0.50 level and the 21-day simple moving average. Recently, there was a recovery wave above the $0.420 and $0.450 resistance levels. It even broke the $0.50 resistance and the 21-day simple moving average.

MATIC Daily Chart
MATIC Daily Chart by FXEmpire

However, the price is facing a major hurdle near the $0.54 and $0.55 levels. There is also a key bearish trend line with resistance near $0.55 on the daily chart.

A close above the $0.54 and $0.55 levels may perhaps send MATIC price towards the $0.70 resistance zone or even $0.75. If not, there is a risk of a fresh decline below the $0.45 level.

ADA, BNB, and DOT price

Cardano (ADA) is struggling to gain pace above the $0.455 level. It is slowly moving lower towards the $0.432 support zone.

Binance Coin (BNB) struggled near the $235 level and is correcting gains. The main support on the downside is near $220.

Polkadot (DOT) failed to stay above the $7.0 pivot level. The price is now trading near $6.75, with a major support at $6.62.

A few trending altcoins are APE, BAT, and CRV. Out of these, CRV is gaining pace above the $0.88 resistance zone.

Crypto Market Daily Highlights – ADA, BTC, ETH, and SOL Extend Losses

Key Insights:

  • It was a bearish Friday session for the crypto to ten, with Cardano (ADA), bitcoin (BTC), Ethereum (ETH), and Solana (SOL) extending their losing streaks to six sessions.
  • The crypto market tracked the NASDAQ 100, which eked out a 0.90% gain, before a post-US close sell-off.
  • The total crypto market cap fell for a sixth consecutive day. A $19.6 billion fall left the market cap at $846.2 billion.

It was a bearish start to the month for the crypto market. Bitcoin (BTC) extended its losing streak to six sessions, with Cardano (ADA), Ethereum (ETH), and Solana (SOL) also seeing red for six consecutive days.

While there were no catalysts to send the crypto market into the red, news of the EU agreeing to a comprehensive regulatory framework may have tested support. A bullish start to the Friday session was short-lived, with a choppy session in the US equity markets leaving the crypto market on the back foot.

On Friday, the NASDAQ 100 rose by 0.90% to end the week down by 4.13%. Monday through Friday, bitcoin fell by 8.48%.

A late Friday relief rally provided crypto support before a post-US market close sell-off. Fears of a recession and investor sentiment toward monetary policy continued to weigh.

US economic data added to the bearish sentiment. In June, the ISM Manufacturing PMI fell from 56.1 to 53.0 versus a forecasted decline to 54.9.

Crypto tracks NASDAQ before sell-off
Total Market Cap – NASDAQ – 020722 5 Min Chart

The Total Crypto Market Cap Falls for a Sixth Consecutive Day

A choppy session saw the total crypto market cap rise to a high of $894.2 billion before sliding to a low of $835.1 billion.

Finding support from the late NASDAQ rebound, the crypto market cap revisited $862 billion before hitting reverse.

$19.6 billion came off the table to leave the market cap at $846.21 billion.

Crypto market cap takes another hit.
Total Market Cap 020722 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

On Friday, DOGE broke the top ten crypto trend, rising by 0.24%.

However, it was a bearish session for the rest of the top ten. XRP slid by 5.72% to lead the way down, with BTC falling by 3.31%.

ADA (-2.61%), BNB (-1.41%), ETH (-1.17%), and SOL (-2.71%) also struggled.

From the CoinMarketCap top 100, Basic Attention Token (BAT), Curve DAO Token (CRV), Cosmos (ATOM), and Monero (XMR) also saw gains on the day. CRV led the way, rallying by 8.55%.

Total Crypto Liquidations Reflect the Bearish Market Sentiment

24-hour liquidations reflected improving market conditions going into the weekend.

This morning, 24-hour liquidations stood at $107 million, down from $248 million on Friday morning.

Liquidated traders over the last 24 hours also declined. At the time of writing, liquidated traders stood at 36,758 versus 83,723 on Friday morning.

One-hour liquidation figures supported the downward trend in liquidated traders.

According to Coinglass, one-hour liquidations stood at $2.44 million, down from $3.14 million on Friday. A return to sub-$1 million would support a bullish session.

Crypto liquidations
Total Crypto Liquidations 020722

Daily News Highlights

  • BnkToTheFuture unveiled three proposals to save Celsius from bankruptcy.
  • The EU agreed on a comprehensive crypto regulatory framework.
  • El Salvador took a bigger bite into the crypto market by purchasing 80 BTC.

Crypto Price Analysis July 1: AR, CRV, COMP, BAT, BSV

Key Insights:

  • Arweave reigned among the rallying altcoins.
  • Bitcoin SV was one of the few who sank yesterday.
  • Bitcoin and Ethereum fell further, with BTC standing at $19.3k and ETH at $1.06k.

The crypto market is back in its favorite zone, the bearish zone, after declining considerably and losing billions in the last few days. The king coin, Bitcoin, and the altcoin king did not make any sharp movement and left the altcoins at the helm.

Arweave (AR)

The altcoin was one of the best-performing assets of the day as it rose by more than 14% in 24 hours. This helped the asset invalidate the dip from the days before and put AR back on track to invalidate June’s 43.5% crash.

The crypto has the support of the investors as well since the Awesome Oscillator is highlighting rising bullishness.

Curve DAO token (CRV)

DeFi token CRV had a somewhat better day than many other cryptocurrencies as it closed the candle on an almost 15% rally. Trading at $0.79, CRV is much closer to invalidating the last week’s crash of 18.42%

The Bollinger Bands indicate volatility is at bay and CRV is safe from price swings, and with the bias acting as support, the price action will only go up.

Compound (COMP)

Compound’s performance has been very unlike the other altcoins as after crashing by 51.78%, the crypto marked a 91.57% rally and declined once again this week by 13.14%

However, as investors prepare for a long-term rise, the asset continued observing inflows, as noticed on the Chaikin Money Flow (CMF).

Basic Attention Token (BAT)

As with the rest of the market, BAT too did well, marking a 10.69% growth within 48 hours the 52.47% rise noted right after the crash made BAT one of the first and only coins to invalidate the June crash completely.

Regardless things are going to bearish for a while as the MACD is indicating such cues.

Bitcoin SV (BSV)

While BAT was one of the first to invalidate the rise, BSV is the first one to break through and still fall back down. The 19.22% drop has almost invalidated the 36.84% rise observed over ten days.

The fall also brought BSV back into the bearish zone on the Relative Strength Index (RSI), and to climb back out of this, BSV will need support from the broader market.

Crypto Price Analysis June 24: AXS, BAT, ZIL, SAND, ONE

Key Insights:

  • Axie Infinity shot up by 16% in a single day.
  • Harmony was one of the only few to close in red yesterday.
  • Bitcoin rose above $21k after a week of deliberation.

With the rest of the market providing support to the altcoins, many cryptocurrencies noted rallies yesterday led by the GameFi token Axie Infinity.

With others following suit and Bitcoin closing in green, the crypto market seemed to be doing better than it did in the previous couple of days.

Axie Infinity (AXS)

Within 24 hours, AXS rose by 16% to trade at $17.2 at the time of writing. This brought the five-day rally of Axie Infinity to 31.3%, however, it still has a long way to go before it recovers the 46.5% losses of this month.

Along with the rally, the bullish cues for the DeFi token also began intensifying as the green bars on the Awesome Oscillator continued rising. If the momentum is maintained, the altcoin will be back to $22 soon.

Basic Attention Token (BAT)

The altcoin had a fantastic run over the last ten days, rising from $0.28 to $0.43 at press time. This rally was successful in invalidating all of June’s losses, setting BAT up for recovery from the April-May crash.

While the rally might seem influenced by the broader market trend, BAT has support from its investors as the uptick noticed on the Chaikin Money Flow indicates clear inflows for the asset.

Zilliqa (ZIL)

Another altcoin enjoying the uptrend, Zilliqa, is teetering on the edge of successfully recovering the 38.3% downfall of June 5. However, it would be invalidated entirely only when ZIL closes above $0.05, which is a little far as the altcoin is trading at $0.046.

But, it won’t be too tricky for ZIL to achieve it since the MACD is clearly highlighting a bullish crossover with increasing bullishness.

The Sandbox (SAND)

After suffering bearishness for the entirety of this month, the Metaverse token finally managed to reclaim the $1 mark, trading at $1.1 at press time. The Sandbox is sustaining its 38% rally from the last five days, which will help it reach closer to invalidating June’s losses.

The presence of Parabolic SAR’s white dots underneath the candlesticks evince that the uptrend will continue raising the price of SAND.

Harmony (ONE)

Being the only coin to close in red yesterday, ONE furthered its downfall, trading at $0.025. Enduring more than 85% in losses, ONE is consistently painting red candles, leaving investors with significant losses.

With the Relative Strength Index (RSI) still stuck in the bearish zone, the altcoin might take a while to bounce back from this crash.

Ethereum Dips by 11.5% Again As Basic Attention Token Rallies by 14.6%

Key Insights:

  • Ethereum traded at $1173 after an 11% decline.
  • Bitcoin slipped below $22,000 as the broader market bearishness intensified.
  • Among the recovering altcoins, Basic Attention Token stood as their leader with a 14% rise.

After a week of unsurprising bearishness, which resulted in the crypto market’s total capitalization falling below the $1 trillion mark, investors were hoping for a relief, but the market seemed to have other plans for them as it took down pretty much the entire market.

Ethereum – The True Altcoin King

As except for a few cryptocurrencies, every other coin, including Bitcoin, noted a decline, Ethereum did not stand back and watch either.

Jumping along with them, ETH justified its title as the altcoin king, plunging by 11.5% in the last 24 hours and adding to the eight-day depreciation of 37.16%.

Although the price was green at the time of writing, trading at $1,176, ETH still needs a lot more than just broader market cues to rise back to $2000.

Sadly, the price indicators are not in favor of the same happening.

The MACD, while did paint a green bar, displayed no sign of a bullish crossover forming on the indicator.

However, in the past, there have been instances where the price has recovered even in a bearish crossover, this time, it may not, as the altcoin is actually inching closer to another fall.

A fall into the oversold zone on the Relative Strength Index (RSI) would place ETH in a consolidation around $1100 to $1300 and would keep it confined until ETH climbs back up.

But, if the latter instance does not occur, ETH could recover quicker than expected.

Basic Attention Token Has All the Attention

Even though the coin is relatively unheard of, BAT led the rally of the few altcoins that managed to break free from the clutch of the bears.

Rising by 14.64% in the last 24 hours, BAT invalidated more than half of the crash it witnessed in the past week. Since consolidation has been the active sentiment in the case of BAT, price did not swindle much.

As a result, the altcoin only experienced a four-day-long crash. At the same time, other cryptocurrencies kept sinking for more than or about eight days.

But the question is if it was an organic rally or not.

The answer, although, is yes. Not only did the altcoin reach closer to its 50-day Simple Moving Average (SMA), but it also drew significant inflows from investors, which was visible on the Chaikin Money Flow (CMF).

This would help the altcoin in creating a sustainable rise, furthering its recovery.

Ethereum Whales Still Bullish on Shiba Inu, Grab 50 Billion SHIB

Despite the larger market’s recovery with Ethereum noting close to 8% daily gains at press time, meme tokens like Shiba Inu still ruled over the hearts of some ETH whales.

Data from WhaleStats revealed that on February 1, ETH whale ‘Juraiya,’ ranked 13th on the list of top Ethereum whales by the platform, purchased a whopping 50 billion Shiba Inu tokens worth $1.079 million. 

ETH Whales’ SHIB Love

The Ethereum whale known by the name ‘Jiraiya’ has purchased $1,079,500 worth of Shiba Inu equal to 49,998,760,270 tokens, according to the platform WhaleStats platform. Further, Shiba Inu made a comeback to the list of the top ten purchased coins by the largest ETH holders.

Just a week ago, an ETH whale bought 606,352,106,247 SHIB tokens worth over $12 million, as reported in a previous article.

The transaction took place after 2,413 blocks as confirmations show. However, SHIB wasn’t the only token ETH whales had their eyes on, in fact, an ETH whale bought 2,499,969 BAT worth $2,101,566 around the same time. 

Interestingly, Ethereum makes for only around 3.7% equivalent to $39,151,916 of this whale’s crypto portfolio at press time.

The amount of ETH in the whale’s wallet exceeded their SHIB holdings only by a minor percent. The whale also HODLs LINK which makes for 2.96% of the whale’s portfolio equivalent to $31,812,598.

That said, about a week ago, two large ETH whales acquired a huge amount of SHIB tokens around 106 billion worth slightly over $2 million at that time. On January 27, Shiba was on the top purchased tokens by top 1000 ETH whale wallets while other tokens on the list were MATIC, LINK, BAT, and FTM

Can A Shiba Recovery Follow?

At press time Shiba Inu oscillated at $0.00002159 noting 3.71% daily and 1.26% weekly gains.

On the other hand, Ethereum’s recovery seemed to be underway on the back of larger market gains triggered by Bitcoin’s sustained price action above the $38,000 mark. Notably, Ethereum at press time stood at $2,731.88 noting 7.69% daily and 11.99% weekly gains. 

Shiba was down 75.29% from its all-time high made in October end last year. Furthermore, SHIB’s short-term and long-term ROIs noted negative returns since the memetoken had been oscillating close to its lower support for the most part of January.

For now, a major SHIB recovery looks unlikely, however, the occasionally positive narratives around the coin can aid short-term price pumps in the near future.

Kraken Lists LINK, OMG and BAT for Japanese Users

Available information has indicated that one of the world’s leading crypto exchanges, Kraken, has just added support for three new tokens, including Chainlink (LINK), Basic Attention Token (BAT), and OMG (OMG), for its Japanese customers.

Kraken’s 3 new Listings

In a January 12 blog post, the exchange disclosed that Kraken Japan now handles trades on the tokens mentioned above. 

Per the announcement, the OMG Network (OMG) is an ERC20 standard-based token. OMG Network is one of the fast-rising Layout 2 solutions providing solutions to Ethereum scalability problems.

The network was rebranded from OmiseGo, and its main objective is to offer accessible, low cost and speedy peer-to-peer financial services for unbanked individuals. 

As of press time, the OMG token is one of the highest gainers in the market with its price rising by 14.3% in the last 24 hours to $5.88.

Basic Attention Token (BAT) is an ERC20 standard token that supports a decentralized, open-source advertising platform. It functions in a “Brave” web browser, which aims to exist alongside users, advertisers, and websites. Users of this browser earn BAT as rewards for viewing ads on websites. 

BAT token has risen by 7.5% in the last 24 hours and it is trading for $1.08 presently.

The third token, Chainlink (LINK), is also an Ethereum ERC20 token. 

According to Kraken,

LINK connects decentralized peer-to-peer networks and smart contracts to real-world data, events, and payments.

Amongst the three assets, LINK is the only one that has been on a green run within the past week, however, within the last 24 hours, it has lost 1.6% of these gains. It is currently trading for $26.3.

Kraken’s Operation in Japan

Kraken’s first foray into Japan began a month after the former leading exchange in the region, Mt. Gox exchange, suffered a major hack and went bankrupt due to a $460 million loss in 2014. At the time, Kraken founder Jesse Powell got an invitation to help recover the fund.

Kraken Japan eventually launched and started trading around 2014 to fill the vacuum left by the defunct Mt. Gox exchange. Four years later, it ceased operation due to “rising costs” and need to focus its resources.

But it relaunched operations in October 2020, with just a limited number of crypto assets available for its users. But since then, it has steadily increased the numbers of available digital assets.

Japan’s regulatory landscape is still working to develop a stricter regulatory framework. Authorities in the Asian country had set up a panel in August last year to help it strengthen its regulation. 

Just recently, the Financial Services Agency (FSA) revealed its intent to regulate stablecoins like USDT and co.

What are Lending Protocols? The Rise of DeFi Lending

The cryptocurrency space has grown to become a $3 trillion industry. Over the past decade, there have been numerous innovations within the cryptocurrency space. One of the most recent innovations is the decentralized finance (DeFi) space.

DeFi is one of the fastest-growing sectors within the cryptocurrency space. It offers numerous services to cryptocurrency investors and other market players. Due to its importance, this post will touch on an aspect of DeFi, which is lending.

What is DeFi?

DeFi can be defined in simple terms as decentralized finance. This is an ecosystem of financial applications built on top of blockchain technology. Unlike the regular financial ecosystem, the DeFi space operates without any third part of central authority.

Instead, DeFi relies on a peer-to-peer network to establish decentralized applications that would allow people to connect and manage their assets regardless of their location or status. DeFi aims to ensure people gain access to open-source, transparent and permissionless financial services from every part of the world.

The decentralized finance ecosystem is built on smart contracts. Smart contracts are self-executing and don’t require a third-party intermediary. DeFi started on the Ethereum network. Hence, it is not a surprise that most of the DeFi protocols are built on the Ethereum blockchain.

Understanding DeFi Lending

DeFi lending occurs thanks to the lending platforms or protocols. These platforms offer cryptocurrency loans in a trustless manner, allowing the holders to stake the coins they have in the DeFi lending platforms for lending purposes.

On the DeFi platform, a borrower can take a loan, allowing the lender to earn interests once the loan is returned. The lending process is executed from the start till the finish without intermediaries.

A coin holder sends the tokens they intend to lend into a pool using a smart contract. Once the coins are sent to a smart contract, they become available to other users to borrow. Afterward, the smart contract issues tokens (usually, the platform’s native token) that are doled out automatically to the lender. The tokens can be redeemed at a later stage in addition to the underlying assets that were sent to the smart contract.

Virtually all the loans issued via the native tokens are collateralized. This means that users who wish to borrow funds will need to provide a guarantee. However, unlike the centralized financial system, the guarantee in the DeFi space is in the form of cryptocurrencies that are worth more than the actual loan itself.

On paper, this idea might seem absurd as the borrower could potentially sell their assets in the first place to generate the money. However, there are numerous reasons why DeFi borrowing makes sense.

For starters, the users might require funds to take care of unforeseen expenses they may have incurred and don’t intend to sell their holdings as they believe the assets are due to an increase in value in the future. Furthermore, by borrowing money via DeFi protocols, users can avoid or delay paying capital gains taxes on their cryptocurrencies. Also, individuals can use the funds they borrow from the DeFi protocols to increase their leverage on some trading positions.

What are the Popular DeFi Lending and Borrowing Protocols?

Maker

Maker is one of the leading and unique DeFi crypto lending platforms. It allows users to borrow money via its DAI tokens. DAI is a stablecoin whose value is pegged to the US Dollar. Using the Maker protocol is available to anyone. Users can open a vault, lock collateral like ETH or other cryptocurrencies and generate DAI as a debt against the locked collateral.

The Maker protocol encourages users to take part in operational earnings via governance fees, acting as interest rates for the platform. MKR is the native token of the Maker protocol, and its holders serve as the last line of defense in the event of a black swan. As soon as the collateral value starts to decrease, MKR is minted and sold in an open market to raise more collateral. Hence, diluting MKR holders.

Aave

Another leading DeFi lending protocol is Aave. This is an open-source platform and one of the most popular DeFi lending protocols in the crypto space. Aave is a non-custodial liquidity platform for earning interests on deposit and borrowing assets. It allows the lenders to deposit their cryptocurrencies in a pool and receive an equivalent amount of aTokens, its native token. The protocol algorithmically adjusts interest rates based on demand and supply, indicating that the more a user holds aTokens, the higher the interest amount.

AAVE/USD chart. Source: FXEMPIRE

Compound

Another popular DeFi lending protocol is Compound. This is an algorithmic and autonomous money market protocol designed to unlock numerous open financial applications. Compound allows users to deposit cryptos, earn interests and borrow other cryptocurrency assets against them. By using smart contracts, Compound automates the management and storage of capital on the protocol.

As a permissionless protocol, anyone with a cryptocurrency wallet and an internet connection can interact with Compound and earn interest. Metamask is one of the wallets that support the Compound DeFi protocol. The Compound protocol supports the lending and borrowing of numerous assets, including DAI, ETH, WBTC, REP, BAT, USDC, USDT and ZRX.