These DeFi Tokens Continue to Rule the Market while $12,000 Remains Elusive to Bitcoin

While Bitcoin is taking its time to reach the one-year high, DeFi tokens grabbed this opportunity to push even higher. Yield collapse which is driving the “everything rally” may also be behind the DeFi craze while the current environment seems to be just the time for DeFi to take off.

It was last weekend that the price of bitcoin surpassed $12,000 for the first time in a year, only to come crashing back down to $10,500 minutes after. A week after that and we haven’t achieved that level yet.

Sure, bitcoin futures contracts on CME hit $12,000 briefly this week, but on the spot market, we remain elusive of the level that is expected to take BTC back to June 2019 high $13,900.

For now, $12k might take some time as analyst Mati Greenspan said, “Personally, I think it would be nice if the bitcoin price would cool down a bit into a more sustainable rally, for example experiencing a bit of a retracement before blasting through $12,000 sometime next week.”

A similar opinion was voiced by Matt Maley, chief market strategist at Miller Tabak & Co, who says the best thing to happen right now for bitcoin is to go back down a bit and then “successfully test that support level and bounce off that. You get that kind of move, and it’s going to be very bullish.”

However, the 29% uptrend by bitcoin in the past 20 days has the mainstream media talking about bitcoin mania being back almost in full bloom.

The largest cryptocurrency is surging alongside gold that is hitting fresh highs and other risk-on assets such as stocks that are also approaching record highs.

According to investors, a collapse in real yield, return once inflation is taken into account, on government bonds is what is driving “everything rally.” Not to mention “QE addiction,” in which the Fed will need even greater stimulus to prevent the market from falling.

It’s DeFi Time!

While bitcoin action has been a bit subdued, altcoins took this opportunity to record some gains. Ether continues to make its way to $400 while Tezos is up 7% which trader Jonny Moe says “after nearly 6 months of consolidation (…) finally looks ready for more,”

Even Litecoin might get to see some movement as analyst Rekt Capital notes, “Litecoin is once again peaking past its multi-year downtrend. BTC and ETH have already confirmed new bull markets. A Weekly Close above the multi-year diagonal confirms a new bull market for LTC.”

However, the top performers of the market are none other than the same old DeFi tokens that have been rallying hard throughout 2020.

No surprise there, given that the DeFi space continues to be a hot sector as seen in the record $4.5 billion total value locked in it, as per DeFi Pulse.

Also, yield turning negative in the real world is not only driving the assets higher but also these DeFi projects, which offer interest ranging from 7% to 35%.

“So you can imagine in a ZIRP [zero interest-rate-policy] environment, people are pretty excited,” said Meltem Demirors of CoinShares. What the giant decentralized risk market, “seeing is people chasing liquidity,” she said.

Additionally, it might just be the perfect environment for the decentralized space to thrive.

Who’s the Winner?

It’s a no brainer either that the hottest coin of 2020 is back onto making new highs. LINK didn’t waste any time to fly just as bitcoin took a breather.

The 8th largest cryptocurrency by market cap of over $4 billion is up 22%, trading at a new high of $11.82. This ATH came after six green candles in a row on the 4-hour chart with sight at yet new high at over $12.

“Bubbles are mathematically impossible in this new paradigm. So are corrections and all else,” said trader Hsaka about the unstoppable rally of LINK.

This has been despite Zeus Capital trying its hardest to prove LINK a scam and crash it.

But LINK is not the only star performer, BAND, which is going to be listed on Coinbase Pro on Monday next week is currently up a whopping 40% trading at $11.19.

Other DeFi winners include Akropolis (31.79%), Melon Protocol (27.18%), Balancer (23.46%), Kava (23.40%), ThorChain (18.11%), and Aave (11.21%).

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,482FansLike
2,795FollowersFollow
4,266FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Investors With Low Financial Literacy Are Twice As Likely to Own Crypto vs Market Gurus: Bank of Canada Report

A new study released by the Bank of Canada has revealed that folks with lower financial literacy are more likely to own Bitcoin than...

Love it or Hate it, UNI Token Stands to Benefit from Uniswap’s Evolution

After releasing the UNI token as part of Uniswap V3, the first update for Uniswap V3 has been made on Github. It might say...

Israeli Draft Bill Proposes Bitcoin be Defined as Currency to Cut Down the Hefty Capital Gain Tax

Four members of the Knesset, Israel’s legislative body, from the Yisrael Beiteinu faction, the secular nationalist political party, have submitted a private member’s bill...

TRON Partners With BitGo To Mint New Wrapped Bitcoin And Ethereum Tokens On Its Blockchain

TRON launches wrapped Bitcoin and Ethereum on its blockchain. The blockchain aims at taking over the raging DeFi market. Tron announced a partnership with...

More Urgent than Ever – Ethereum Layer 2 Solution Goes in its First Phase of Testnet Launch

Ethereum layer 2 solution Optimism is welcoming the first phase of the Optimistic Ethereum Testnet. This development has become a necessity of the market thanks...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today