DeFi Weekly Wrap-Up: LUNA Loses Big, AVAX Looks Optimistic, UNI Stays Afloat
Top tokens in the DeFi market have had a mixed week of trade following Bitcoin’s price fall to the $35,000. Major DeFi tokens like LUNA, AVAX, and AAVE were pushed into the deep red, sinking below their key support zones. The $40bn collapse of cryptocurrency luna has sent shockwaves through decentralized finance, with traders shifting away from investments linked to it.
Luna's Lingering Impact
The aftermath of Terra (LUNA)'s collapse continues to be felt across the DeFi landscape. Once a major player, LUNA ranks as DeFi’s largest loser this week, highlighting the inherent risks within the decentralized finance ecosystem.
Avalanche (AVAX): A Glimmer of Hope?
Amidst the uncertainty, Avalanche (AVAX) presents a more optimistic picture. AVAX’s TVL increased by more than 10% to a record high of $8.5 billion, signaling renewed investor confidence. The Avalanche Foundation is negotiating a deal to repurchase 1.97 million AVAX tokens from Terraform Labs’s bankrupt estate. This strategic move underscores the foundation's commitment to strengthening the AVAX ecosystem. While AVAX is still at -72% from its highs of three years ago, the recent performance suggests potential growth ahead. Some analysts are eyeing the $150-$200 price range for AVAX.
Uniswap (UNI): Holding Steady
Uniswap (UNI) has largely managed to stay afloat amidst the market turbulence. While also down (-76% from highs), UNI's resilience demonstrates its established position within the DeFi space. With Uniswap (UNI) and Lunex Network preparing for their possible rallies, the DeFi space is set for a potential upturn.
The Bigger Picture: DeFi's Future
Regarding DeFi tokens, it should be noted, however, that a true awakening could be on the horizon. After a turbulent period of uncertainty, the recent performance suggests renewed investor confidence in the market, signaling potential growth ahead. Even GRT, despite being down -92%, could participate in this resurgence. BTC’s over performance could lead to an alt-coin rally, so keep your eyes on these DeFi protocols, including Avalanche (AVAX), Uniswap (UNI), and others.
Originally published 22 de sept. de 2025