Ethereum’s DeFi is booming: Reasons for Aave’s (+35%) and UMA’s (+150%) pumps

  • Ethereum’s DeFi continues to boom, with Aave (+35%) and UMA (+150%) attracting the most attention in the past 24 hours.
  • UMA launched the uSTONKS token yesterday, which tracks an index of the ten most popular stocks from the WallStreetBets Subreddit.

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Ethereum’s DeFi is experiencing another massive boom over the past few days. Since February 01 alone, the Total Value Locked (TVL) has risen by close to $5 billion and now stands at $32.48 billion at the time of writing.


The increasing adoption of DeFi protocols is reflected in the TVL, and is also leading to fabulous profits for DeFi token investors. Within the last 7 days, Uniswap (+44%), Aave (+50%), SushiSwap (+106%), UMA (+236%), and Compound (+76%) are indisputably the biggest winners on the crypto market, and are only outperformed by Dogecoin (+352%).

A look at the overall view of the market today shows that UMA (+150%) and Aave (+35%) are showing the highest price increases over the last 24 hours. UMA was trading at $35.41 at the time of writing, while Aave was close to the $400 mark, trading at $399.26 and has moved into 15th place by market cap.

Aave – the most bullish altcoin in the DeFi space?

With the recent AAVE price rally, the TVL of the Aave platform has also increased by 23% in a single day and is now on the verge of crossing the $5 billion mark. With this, Aave continues to be the second largest protocol in Ethereum‘s DeFi sector after Maker.

Popular pseudonymous crypto trader “Smart Contractor” recently told his 90,000 followers that Aave is one of the most promising altcoins on the market in the wake of Ethereum’s bull run. The trader analyzed that AAVE is massively bullish on all charts – USD, BTC and ETH. In this respect, the AAVE price rally might be far from over.


As Santiment noted yesterday, the recent share price rally comes in line with the entry of numerous large investors into AAVE. The on-chain data provider noted:

 #DeFi is alive and well in #crypto, as $AAVE has skyrocketed to a +33% gain in the past day. #Aave whales, which we deem addresses holding 1,000 tokens or more (~$397k+ USD), have ballooned from 266 to 327 addresses this past month, fueling this rally.


Reasons for pumping UMA

The UMA token currently ranks #25 with a market cap of just under $2 billion USD. Universal Market Access (UMA) allows users to create synthetic assets and is not limited to traditional financial instruments.

The current pump could possibly be related to yesterday’s announcement that the UMA protocol has launched the uSTONKS token in collaboration with Yam Finance. The uSTONKS token is a synthetic token that tracks an index consisting of ten stocks that are most commented on in the infamous WallStreetBets Subreddit.

In addition, UMA announced today that the Q4 2020 upgrades have been fully audited by the Open Zeppelin Team have been audited. The upgrades included new flexible optimistic oracles and the perpetual synthetic.

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