CRV and CVX lead DeFi token index sharply higher as market awaits pro-crypto administration
Over the past 30 days, The Block’s DeFi index has surged by ~102% to the time of writing, significantly outperforming the combined returns of both Bitcoin and Ethereum. BTC has risen by 13.5% and ETH by 26% over the same period.
The Block’s DeFi Index tracks a basket of tokens, including UNI, AAVE, LDO, MKR, CRV, LRC, COMP, CVX, BAL and YEARN.
Nearly every token in the index has appreciated by at least 100% in the past month, with the standout performers being CRV and CVX, which skyrocketed by 360% and 310%, respectively, at their peaks.
However, not all tokens share the same level of success. MKR emerged as the notable underperformer, gaining only 70% at its peak over the last 30 days. At time of writing, MKR is up a modest 35% since Nov. 15.
Though it lags behind its peers in the DeFi Index, MKR still outperforms BTC and ETH by a wide margin.
Donald Trump’s victory in the U.S. presidential election appears to be the primary driver behind DeFi protocols' notable outperformance. The incoming administration is widely expected to adopt a more favorable stance toward crypto, fostering optimism across DeFi.
Recent onchain analysis has added fuel to this rally. It has been revealed that World Liberty Financial, a blockchain project backed by Trump, has been actively purchasing DeFi tokens such as AAVE and LINK, further bolstering confidence in the DeFi sector.
