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Is it worth investing? 4 DeFi tokens with bullish signals

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The decentralized finance (DeFi) sector continues to grow despite the current downturn in the cryptocurrency market as a whole.

The total amount blocked (TVL) in DeFi protocols currently amounts to US$ 201.45 billion, according to data from the DeFi Llama platform.

Considering that the sector continues to expand, it may be interesting to look for DeFi tokens for diversification in search of profits.

Cryptocurrency analyst firm Santiment highlighted in a recent review four tokens that are signaling a rally: Aave (AAVE), Compound (COMP), Maker (MKR) and Ren (REN).

As Santiment pointed out, it seems these cryptocurrencies have recently hit a bottom. That is, this could be a good buying opportunity:

According to the analytics firm, the pricing funds were accurately predicted by measuring the ratio of Active Deposits to Daily Active Addresses (AD/DAD).

This is a balance between token holder activity and general network activity. AD/DAD is a sort of “panic” level, according to Santiment.

AAVE (AAVE)

Regarding Aave, Santiment highlighted that it seems the token price likes to grow from this AD/DAD metric base:

“We could suggest that low values of AD/DAD ratio are indicating a nice buy opportunities. Same time higher levels of AD/DAD indicate ‘exit’ points, where holders probably tend to exit their positions.” the company said.

Is it worth investing? 4 DeFi tokens with bullish signals

Compound (COMP)

Next, Santiment analyzed the Compound (COMP) token

According to the company, like Aave, Compound’s AD/DAD dropped to an all-time low just a few days ago, which is a good sign.

Is it worth investing? 4 DeFi tokens with bullish signals

Maker (MKR)

As for the MKR token, from the Maker platform, Santiment stated that the AD/DAD metric dropped around the end of January.

“We could suggest that it could increase further, not as strong as other tokens, but still.”

Is it worth investing? 4 DeFi tokens with bullish signals

Ren (REN)

Finally, with regard to REN, the analytics platform said that the current moment provides a “very good entry”:

“Then we’ve got a perfect bottomish ‘splash’ around January 22. Active Addresses spike plus Age Consumed spike suggesting that holders have panicked and started to move their bags towards exit.”

Is it worth investing? 4 DeFi tokens with bullish signals

All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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