Here’s Why DeFi Tokens Are Leaving the Price of ETH in the Dust

The ICO bubble sparked a bull run that pumped ETH from roughly $8 to $1,448 at its peak. However, as DeFi gains traction, ETH appears stuck in a rut. The reason for this comes down to one factor: demand.

Over the last two months, the DeFi narrative has taken off with unexpected zeal. Investors have enjoyed the massive run-up in token prices, with most DeFi tokens recording at least 100% gains in the last month.

Yield farming, in particular, has been a significant contributor to the latest DeFi rally. The launch of Compound’s governance token marked a new era for the niche as the protocol quickly absorbed funds from across DeFi and is en route to $2 billion in lending.

What’s surprised most market participants at this juncture is ETH’s muted price action. Ethereum is the base layer for DeFi as it stands today. To interact with DeFi, one must have an Ethereum browser wallet funded with ETH to pay for transactions.

Almost everything is at ATH's on Ethereum