Multiple decentralized finance (DeFi) focused cryptocurrencies have seen parabolic performances in the past few days. This comes in spite of the fact that Bitcoin finally broke out on Monday morning, surging from the $11,700 it was holding at to $12,100 in a rapid rally.
Analysts expect this interest in coins like Band Protocol (BAND), Balancer (BAL), Compound (COMP), Kava (KAVA) and THORChain (RUNE) to eventually materialize in Ethereum. Ethereum, after all, is easily the flagship blockchain of the DeFi ecosystem.
DeFi Tokens Explode Higher as Bitcoin Moves
Over the past few days, DeFi-centric tokens have literally gone parabolic. Below is a screenshot from Coin Market Cap of the top-performing cryptocurrencies in the past 24 hours (top-100 digital assets).
A key theme running through the crypto assets listed is that a majority of them are tokens for DeFi protocols.
- BAND, a cryptocurrency for the Band Protocol, is up 50% in the past 24 hours. The asset is now up by approximately 200% in the past week alone. Band is an oracle project, meaning it provides financial data and other data for on-chain applicaitons.
- Ampleforth (AMPL), an unbacked stablecoin “experiment” (as some have dubbed it) is up 26.5% in the past 24 hours.
- Ren Network’s REN token is up 24% in the past 24 hours. Ren Network is a project focused on “providing access to inter-blockchain liquidity for all decentralized applications.”
- And much more.
Screenshot from Coin Market Cap of the top-performing cryptocurrencies in the top 100 over the past 24 hours. Current as of Monday morning, the morning of Aug. 9.
Related Reading: Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears, Cardano’s Shelley Launches
Ethereum Could Rally Next
ETH has not been rallying as fast and as far as DeFi-based altcoins based on Ethereum blockchain. But, a fund manager in the space says that the interest in DeFi could soon materialize in ETH.
Spencer Noon, the head of DTC Capital, recently said on the matter:
“My read on #DeFi after speaking with instl investors, fund mgrs, OTC desks, and FOs over the last few wks: The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”
This has been echoed by Qiao Wang, a former head of product at Messari. The cryptocurrency trader/entrepreneur made the following comment on the matter:
“After a pretty ridiculous breakout in the DeFi sector and making it to mainstream media, get ready for the next leg up in the majors. The retail and dumb institutional psychology is that the majors are decent proxies for the individual sectors. An ‘index play’.”
Don’t see a huge amount of risk until the election TBH. So maybe get a bit more conservative in September/October.
— Qiao Wang (@QWQiao) August 8, 2020
Wang added that investors are likely to be risk-focused until September/October, when the market begins to start betting on the outcome of the 2020 Presidential Election for the U.S.
Featured Image from Shutterstock Price tags: Charts from TradingView.com
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