Grayscale DeFi Fund: Should You Buy the Tokens or Invest in the Fund?

As the bull run begins in the altcoins market, the DeFi tokens are potentially gearing up to hit the 2021 levels. Amid such tokens, the Grayscale DeFi fund holds five top names. So, should you consider buying these tokens or investing in this fund directly? Let's find out.

Grayscale, a leading fund house, has a diversified presence in multiple segments of the crypto industry. With a range of crypto products, including ETFs, trusts, and mini trusts, Grayscale's entry into the scene has brought CeFi's attention to the crypto world.

As the bull run begins in the altcoins market, DeFi tokens are gearing up to hit the 2021 levels. Among such tokens, the Grayscale DeFi fund holds five top names. So, should you consider buying these tokens or investing in this fund directly? Let’s find out.

Grayscale DeFi Funds

The Grayscale DeFi fund’s management fee is 2.50%, and the performance fee is 0%. The fund holds five big DeFi tokens: Uniswap, AAVE, Maker, Lido DAO, and Synthetix.

Despite the high management fee, the DeFi fund’s performance is questionable. The NAV per share has dropped from a high of $79.25 in late 2021 to the recent price of $15.70.

Nevertheless, as the broader market recovery is shaping up, let’s take a closer look at the DeFi Tokens.

Uniswap (UNI)

With a bullish reversal from the $5.368 support level, the Uniswap token is back in action. The DeFi token has increased by 29% in the last 18 days. The reversal rally surpasses the 23.60% Fibonacci level at $6.487.

Currently, the uptrend is challenging the confluence of the 50-day exponential moving average and the 38.20% level at $7.294. With a rounding reversal, the underlying momentum showcases a potential trend reversal.

Moreover, the DMI indicator supports the bullish narrative with a potential crossover in the VI lines. However, the downtick in the ADX line reveals a weakness in trend momentum.

Considering the uptrend continues, the Uniswap token price can challenge the 50% line at the $8 resistance level. Optimistically, the uptrend shows potential to reclaim the $10 psychological mark at the 78.60% level.

AAVE (AAVE)

With a market cap of $2 billion, the AAVE token has increased by 21% in the last seven days. Currently, the AAVE token is trading at $134 with an intraday pullback of $1.29.

Further, the AAVE token price is ready for a massive surge with a 23.42% YTD growth and a bullish attempt to surpass the 52-week high at $142. With a bullish golden crossover in the 50- and 200-day exponential moving averages, the underlying bullishness is increasing.

The DeFi token is in a retest phase and ready to bounce back with increased momentum. Optimistically, the Fibonacci level paints the $206 as a potential target, aligning with the 1.618 level.

Maker (MKR)

With a market cap just 50 million shy of the $2 billion mark, the MAKER token has increased by 6.61% over the last 7 days. In the last 24 hours, the DEFI token has increased by 3.64% and is currently trading at $2,096.

In the daily chart, the DEFI token reveals a bullish comeback from $1,720, with a 26% year-to-date growth despite the 48% downfall from the annual high. The DeFi token sustains dominance over the $2,000 psychological mark. Furthermore, with the recent rounding-bottom reversal, MKR price is challenging the 23.60% Fibonacci level at $2,165.

However, the recent downfall leads to a death cross between the 50-day and 200-day exponential moving average. Nevertheless, the recent recovery showcases a shift in trend momentum with a positive crossover in the MACD and signal line. If the MAKER token surpasses 23.60%, the uptrend can scale to 50% at $2,667.

Lido DAO (LDO)

With a market cap of $1 million, the Lido DAO token has increased by 5.30% in the last 24 hours. Currently, it is trading at $1.18, with a 17.6% surge in the last seven days.

In the daily chart, the bullish recovery shows a positive cycle in a longer-term falling channel. The bull run accounts for four consecutive green positive candles and helps sustain the dominance over the $1.00 psychological mark.

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