Decentralized finance (DeFi) tokens, including Chainlink (LINK), Yearn.finance (YFI), and Aave (LEND) strongly recovered after a prolonged slump.
At its monthly low, YFI declined by nearly 64% in the past 11 days. Similarly, DeFi giants like Chainlink declined by 45% at the monthly low since mid-September.
The 1-hour chart of Yearn.finance (YFI). Source: YFIUSD on TradingView.com
But following Bitcoin’s lead, Chainlink, YFI, and LEND are leading the DeFi market to a strong recovery.
Three major catalysts appear to be buoying the DeFi market in the last 72 hours. The factors are BTC’s rebound, the oversold DeFi market, and strengthening DeFi fundamentals.
Chainlink and YFI Oversold But Fundamentals Remain Strong
Within the past two weeks, Chainlink and YFI dropped by 40% to 64% against the U.S. dollar. But compared to their