@benjaminimpson
DeFi tokens have shown strong correlation with Bitcoin’s price movements, particularly during market rallies. This correlation means that when BTC rises, many DeFi projects tend to appreciate as well. However, DeFi tokens can be more volatile due to their smaller market caps and greater sensitivity to market trends. While this creates investment opportunities, it also increases the risk, as these tokens can experience significant price swings. Investors should assess the long-term potential of DeFi platforms before committing.
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