34.5%, 33.2.6%, 20.79%, 20.3%: This is explicitly how the weekly returns of Synthetix, SuhshiSwap, Algorand and PancakeSwap looked like at press time. All the aforementioned tokens have a commonality – they sustain yield farming. People from the community usually generate additional income by farming. As such, whenever HODLers lock up their cryptos or provide liquidity, they are rewarded. Yield farmers typically keep moving their funds from different protocols in search of high yields.

Even though the weekly returns seemed to be fairly decent for these tokens, their daily returns explicitly stood below 1% at the time of writing. So, as the bullish narrative is intensifying in the broader crypto market, is the yield farming craze fading away?

Deciphering what the metrics indicate

Source: Santiment

As a matter of fact, to yield farm, one has to lock up the native token for a stipulated period of time. Interestingly, the volumes of most of the DeFi tokens have been increasing of late. Take, CAKE and ALGO, for instance. As can be seen from the chart attached, their volume has nearly doubled since mid-July. Trade volume usually takes into account both buy and sell volumes. However, keeping the recent price action in mind, it can be said that these tokens are in demand.