Ethereum and DeFi tokens amid selling pressure

Ethereum’s price dropped recently, after nearly hitting a high of $ 390. Ethereum is currently trading at just under $ 340, down 8.4% in the past 24 hours. Popular DeFi tokens, including Yearn.finance (YFI) and Uniswap (UNI), have also undergone severe corrections in the past few days.

The decentralized financial market had previously outperformed Bitcoin (BTC) and Ethereum (ETH) in August, but recently DeFi tokens plummeted. Yearn.finance and Uniswap both recorded declines of 46 to 48%, after reaching monthly highs.

Uniswap’s UNI token has seen a huge price increase since its launch, as a list of major exchanges, including Coinbase Pro, Binance, and FTX. Immediately after the UNI token was launched, Ethereum’s transaction fees also hit a new high. Gas prices have been recorded up to 700 gwei, due to network congestion faced by users requesting Uniswap tokens. The average price of gas is around 416 gwei.

The Yearn.finance (YFI) token previously hit an all-time high of $ 38,000, before dropping to its current $ 24,200. In line with predictions of a DeFi market correction due to profit taking, however, Ether is still struggling to gain momentum.

Ethereum often leads the trend of altcoins, including DeFi tokens, however Ether struggled to maintain its performance against Bitcoin. Ether remains below $ 400, while BTC recently climbed to $ 11,100 before dropping below $ 11,000.

The price of Ether has most likely fallen due to the selling pressure of DeFi tokens, as UNI and YFI tokens have undergone a 50% correction, most likely due to profit taking.

Many DeFi tokens have fallen too, with Aave’s LEND token, the Synthetic Network token also seeing a drop in price in recent days as selling pressure builds.

However, with equity markets in the red and the US dollar losing its grip on foreign currencies, the Ethereum, Bitcoin and DeFi markets remain upbeat thanks to the push from traditional markets.

The stock market faced a strong sell-off on Monday, leading to a correction in hopes and expectations of an economic recovery. As the United States continues to grapple with the coronavirus pandemic, Europe is also starting to see a sharp rise in a second wave of COVID-19 cases.