A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round
With Bitcoin expected to consolidate in the 30k-40k range, it might finally be time for altcoins to rally.
The last two days have been brutal for the cryptocurrency market; wiping out $285 billion in the process.
Interestingly, while Bitcoin, Ethereum, and major cryptocurrencies remained in losses, the DeFi market started uptrending before these top digital assets had time to recover.
Among the top DeFi projects, Synthetix jumped past $13.50. SNX is actually cruising towards its all-time highs SNX -1.86% Synthetix / USD SNXUSD $ 9.27
-$0.17-1.86% Volume 145.43 m Change -$0.17 Open $9.27 Circulating 114.84 m Market Cap 1.06 b 2 w Ethereum Scaling Solutions Continue to Record User Growth in Ongoing Boring Market Condition 2 w Over 30% of ALPHA’s Circulating Supply Is Now Being Staked & Earning 13% APY 2 w SNX Leads the DeFi Bounce as Team Focuses on Layer 2 Developments and Evolution of ETH Wrapper .
Maker is also enjoying the greens MKR 2.29% Maker / USD MKRUSD $ 2,661.24
$60.942.29% Volume 104.74 m Change $60.94 Open $2,661.24 Circulating 991.33 K Market Cap 2.64 b 6 d Maker Foundation Dissolves to Give the Community Full Control Over the Protocol and DAO 6 d Neon Labs Integrates Cross-Chain EVM Solution Into Solana, Bringing Ethereum Dapps to the Blockchain 1 w DeFi Activity Picking Up, Unique Addresses Surpasses 3 Million with Uniswap in the Lead along with AAVE, COMP, RUNE, 1inch, and Hegic. Except for a few DeFi tokens that are in heavy losses, the majority have already started making their way up.
“DeFi assets moving back to the highs as if nothing had happened … aside of a massive transfer of wealth among traders. Impressive. There's a clear set of winners at present. SNX COMP MKR AAVE and SOL. YFI should be in this group once it breaks above 40K,” noted trader and economist Alex Kruger.
The total value locked (TVL) in DeFi is currently standing at $21.34 billion, down from Sunday’s record $23 billion.
Is It Time for Altcoins’ Rally?
Bitcoin is trending up, currently trading above $34,350 BTC 4.11% Bitcoin / USD BTCUSD $ 38,746.65
$1,592.494.11% Volume 33.93 b Change $1,592.49 Open $38,746.65 Circulating 18.77 m Market Cap 727.22 b 2 h Bitcoin Miner Crusoe Energy Eyes Expansion Play, Seeks Outside Investment 7 h Tesla Reported No Changes in Digital Assets in Q2 But Recorded A Bitcoin-Related Impairment of $23 Million 8 h Bitcoin Hash Rate Recovers to 110 TH/s as Price Rallies Past $40k, Thanks to Largest Short Squeeze Ever after falling to nearly $30,000 on Monday. From here, the market expects the largest digital currency to take a rest and range for a while.
Kruger's Short-term BTC view is “range-bound in 30K-40K until the curve and vols come off a further. Then, 50K. I wouldn't be surprised if 30K is briefly breached, but the risk is to the upside.”
The latest correction, which has been the largest since the March 2020 sell-off, has also brought forth a series of $20k calls, but the trader sees these calls to be “missing the big picture.”
The advantage of this ranging in Bitcoin would be to altcoins that have been looking for their time to rally and reach for their ATHs. Even Ethereum hasn’t hit its 2017 peak of $1,420 yet, missing it by about 5%.
Bitcoin dominance is already down from early Jan. high of 73.7%, last seen in 2017, to under 70%.
“This was the first major correction since Bitcoin season started… If BTC consolidates between $30K-$40K over the next few weeks, altcoins could go ballistic,” noted another trader @CryptoHustle.