@rookie5
DeFi token prices are closely linked to broader crypto market movements. In bull markets, when investor sentiment is positive, DeFi tokens often see increased demand as decentralized finance applications like lending, yield farming, and staking gain popularity. In contrast, during bearish periods, DeFi tokens tend to drop as liquidity dries up and risk appetite falls. The performance of major cryptocurrencies like Ethereum also influences DeFi tokens since many DeFi protocols are built on Ethereum’s blockchain. Tracking these correlations can help predict potential price movements within the DeFi space.
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