When the digital currency ecosystem records as much as a plunge below $1 trillion in combined market capitalization, the Decentralized Finance (DeFi) ecosystem can certainly not be spared.
While Bitcoin (BTC), the industry’s legacy coin, has skidded back to its lowest level since December 2020, the DeFi Total Value Locked (TVL) has also plunged in tandem, dropping to $83 billion at the time of writing.
For context, the DeFi TVL was pegged at around $114 billion, as reported by Blockchain.News back in May was a figure which was considered very low considering its prior leaps.
The spill-over in the crypto ecosystem into the DeFi world is unprecedented, and it explains the growing lack of faith amongst both retail and institutional investors in the ability of the DeFi protocols and their underlying products to help print marginal profits.
MakerDAO (MKR) still maintains its 9.67% dominance in the DeFi industry atop an $8.03 billion in Total Value Locked. Curve Finance (CRV), Aave (AAVE), and Lido Finance (LDO) trailed Maker in that order with respect to their relevance, but not without an encompassing minimum drop of 25% from all three protocols.
Bad But Not All is Worse
While the outlook of the DeFi ecosystem looks very bad, the trends are not completely worse for all of the protocols as some are maintaining a positive growth even amidst this encompassing uncertainty.
Frax Finance (FRX) is amongst the protocols with a marginal growth per its TVL upshoot. With a daily change of 0.21% and a weekly change of 2.48%, it is evident that investors consider the protocol one of the most resilient for now.
Solana-based AMM protocol, Atrix, Maple Finance, and Spool Protocol have also shown far more resilient growths on the weekly chart compared to the reality in the broader crypto ecosystem.
The past week saw a comprehensive and encompassing onslaught in the crypto market ecosystem as the combined market capitalization plunged to $1.56 trillion, the lowest level that has been recorded since February 24.
Investors are no longer oblivion of the fact that the continuous increase in interest rates by the US Federal Reserve is poised to channel funds out of the crypto ecosystem into the traditional market, and they are pricing in the cryptocurrencies based on this reality.
However, not all of the top altcoins saw a plunge in their value in the Week-to-Date (WTD) period. Here are three of the most resilient coins which printed good growth amid a sweeping bearish slump.
Tron (TRX)
Tron is the native cryptocurrency of the Tron blockchain protocol, and it is one of the most digital currencies being shilled by the popular investor, Justin Sun. The coin is changing hands at $0.08735, up 4.10% in the past 24 hours and by 28.98% in the trailing 7-day period. A new utility was added to the coin with the introduction of USDD, an algorithmic stablecoin that was floated by the Tron DAO Reserve.
Algorand is one of the most versatile and scalable blockchain protocols around today. With a growth of 22.04% at the time of writing to $0.7334, it was obvious that investors saw the upside potential in the new role of the protocol as it was named the official blockchain partner of the FIFA world football governing body for the coming world cup competition. With its cheap price, investors are optimistic about a good uptrend in the near term.
Curve DAO Token (CRV)
The Curve DAO Token is the native token of the Curve platform for stablecoins that uses an automated market maker (AMM) to manage liquidity. The CRV is arguably one of the most resilient tokens to survive the past week’s onslaught as it is up 17.43% to $2.41 per token according to data from CoinMarketCap. The platform and the token are now considered one of the banner protocols in the Decentralized Finance (DeFi) world.
Avalanche (AVAX) recovery extended into its third week, primarily in the wake of similar upside retracement across the top crypto assets.
On Thursday, AVAX’s price rallied by nearly 16% to reach $96.50, its best level since Jan. 14, 2022. The massive intraday move came as a part of a recovery that started Jan. 22, after the Avalanche token bottomed out near $53. As a result, AVAX’s net rebound came out to be more than 80%.
AVAX/USD daily price chart. Source: TradingView
Network growth offsets macroeconomic scare
Crypto markets have been whipsawed since the beginning of 2022 as investors assessed the U.S. Federal Reserve’s monetary tightening prospects. After reaching its record high above $150 in November 2021, AVAX lost as much as 65% of its value in what many have termed as “crypto winter.”
Similarly, top cryptocurrencies Bitcoin (BTC) and Ether (ETH) plunged by as much as 52% and 57% from their Nov. 2021 record highs. But they recovered almost half of their losses after bottoming out in late Jan. 2022, thus prompting other crypto assets — including AVAX — to undergo similar healing rallies.
AVAX price also rose as Avalanche—as a standalone blockchain project—reported massive network growth at 2021’s close.
That included a rise in the number of its daily active addresses to 70,000 per day in Q4 versus 10,000 per day in Q3 and a 714% rise in the total value locked (TVL), the fastest growth among its competitors within the Layer-1 and Layer-2 categories, after the arrival of leading Ethereum protocols, Aave and Curve, into its ecosystem.
Avalanche 2021 total value locked versus competitors. Source: TradingView
Interestingly, the Avalanche network grew in Q4 despite a drop in its net market valuation in the same period, suggesting AVAX merely reacted to turbulence in the crypto and, in turn, the global markets, led by the Fed’s so-called taper tantrums.
But a report co-authored by Messari researchers Chase Devens and James Trautman hinted at higher AVAX adoption in the quarterly sessions ahead. It mentioned Avalanche Rush, a $180 million liquidity mining incentive program launched in August 2021, for its ability to attract more participants into the network.
Excerpts from the report:
“While Avalanche Rush may continue to serve as a catalyst for ecosystem growth and garner more project launches and partnerships, significant technological advancements are on the horizon for the teams developing the Avalanche core platform and are critical to the network’s ability to sustain further growth.”
AVAX technical outlook
AVAX’s recent upside move met with selloff near a multi-month descending trendline resistance this Tuesday.
Specifically, the resistance comes as a part of a falling channel. AVAX has been trending lower inside it since the beginning of its massive correction move in late November 2021. As a result, the Avalanche token’s probability of continuing downward inside the channel’s range—for now—appears higher.
An extended pullback upon testing the channel’s upper trendline as resistance may push AVAX toward the interim support level of $86.50. A further breakdown would have AVAX/USD eyeing $72 as its next target.
Related: VanEck launches its first multi-token cryptocurrency fund
Nevertheless, on the whole, AVAX’s bearish target on a pullback looks to be near the channel’s lower trendline —that is around $57.
Conversely, a decisive move above the channel’s upper trendline could have AVAX eye $104 as its next upside target, with an inclination to hit $135 on a further move upward.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
DeFi protocol Balancer may soon adopt vote-escrowed system similar to the one pioneered by Curve Finance.
Balancer Labs CEO and co-founder Fernando Martinelli put forward a proposal introducing a vote-escrowed token called veBAL.
BAL is up 11.2% following the update.
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Balancer is looking at implementing a vote-escrowed token model for the Balancer protocol.
Balancer Looks to Follow Curve Tokenomics
Balancer has taken note of the Curve Wars.
The pioneering DeFi protocol is weighing adopting a vote-escrowed tokenomics model similar to the one popularized by Curve. If implemented, the system will enable BAL holders to lock up their tokens for a set period of time in order to receive pegged “VE” tokens, in this case veBAL.
Per a Thursday proposal from Balancer Labs CEO and co-founder Fernando Martinelli, the development team behind the project said it has considered adopting a vote-escrowed system to improve its existing tokenomics. Currently, BAL holders can stake their tokens to vote on proposals, but there isn’t any kind of locking mechanism. In the proposal, Martinelli said that Curve’s tokenomics “seems an obvious fit for Balancer Protocol.”
Curve introduced VE tokens to give CRV holders booster yields, a share of protocol revenue, and the power to vote on governance proposals. Receiving voting power is particularly notable as it can be used to determine decisions like the amount of liquidity mining rewards that get distributed to various pools.
The vote-escrowed tokenomics model is the driving force behind the so-called “Curve Wars”–an ongoing DeFi battle in which protocols compete to accumulate CRV, lock it for veCRV, and attempt to gain influence over Curve’s voting power in order to get more rewards for their users. The Curve Wars is effectively a game of liquidity capture in which protocols race to acquire as much CRV as possible to govern the project and Curve strengthens its place in DeFi’s top ranks.
If passed, the proposal will introduce veBAL as the main asset to vote on future proposals. The new system could help Balancer follow Curve’s lead and potentially fuel demand for BAL tokens. Interestingly, Yearn Finance also recently adopted a vote-escrowed system for YFI.
Notably, Balancer’s proposal slightly differs from the one introduced by Curve. While Curve lets users lock CRV to receive veCRV, Balancer users will have to acquire Balancer Pool Tokens from the protocol’s BAL/ETH pool to receive veBAL. Balancer Pool Tokens are issued to liquidity providers on Balancer; they represent the user’s share of the pool.
Though the proposal has not yet passed, the market appears to have responded well to the proposal. BAL is up 11.2% today.
Disclosure: At the time of writing, the author of this piece owned ETH and other cryptocurrencies.
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You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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Pseudonymous analyst Credible Crypto believes one decentralized finance (DeFi) altcoin could surge up to 10x.
The analyst tells his 296,500 Twitter followers that he’s not worried about the short-term price action for Curve Dao Token (CRV), the governance token of stablecoin-focused decentralized exchange Curve Finance.
Explains Credible Crypto,
“I’ve been talking about it since it was under $3. Even at $4.67, it’s still a great price. In fact, I bought more at $5.
I don’t care what happens on the day-to-day – HTF chart is bullish and I’m loading up at $5 and under and will sell for no less than 5-10x.”
In early January, the crypto analyst called CRV the “most asymmetric risk-reward coin in the space.”
“A combination of the charts, fundamentals and the ability to earn 50% APR while you wait for price appreciation is something that is incredibly hard to find in this space.”
CRV is trading at $4.22 at time of writing, down more than 12.6% over the past week.
Credible Crypto also thinks Bitcoin (BTC) is near its bottom, with the leading crypto asset trading at $42,114.66 at time of writing, down nearly 3.5% from where it was priced one week ago.
The trader says $45,500-47,500 should act as Bitcoin’s next key area of resistance if its price starts to move back upwards.
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Featured Image: Shutterstock/Tatyana Ledneva/Sensvector
The decentralized finance (DeFi) sector has taken a beating over the past day, with several blue-chip tokens suffering significant losses.
UNI, the governance token of decentralized exchange (DEX) Uniswap is down 11.8%, slipping to an intraday low of $15.29, according to CoinGecko.
The token lost 16% of its value in the past two weeks and is currently 65.9% off its all-time high of $44.9 seen in May last year.
LINK, the native token of DeFi’s leading oracle project Chainlink, has meanwhile slipped to a two-week low, losing 7.1% over the day and almost 20% in the past week.
Speaking to Decrypt earlier this month, Chainlink co-founder Sergey Nazarov revealed that the project is planning to add a staking option for LINK holders later this year.
However, the initial enthusiasm, which took LINK above $28 last week, is seemingly cooling off, with the token trading at $21.56 by press time.
CRV, the token powering Curve Finance, a decentralized trading platform focused on stablecoins and like-valued assets, is similarly down 7% since Tuesday, changing hands at $4.32 at press time.
CRV surged above $6.50 at the start of the year; however, the token’s price retraced since then significantly, losing almost 30% in the past two weeks, as data from CoinGecko shows.
Loopring bucks DeFi downtrend
Elsewhere, LRC, the native token of the Layer 2-based crypto exchange Loopring, seems to be defying the downtrend, going up 3.7% over the day to a daily high of $1.19.
However, this will come as little consolation to longer-term LRC holders as the token is down 20.2% over the last seven days and as much as 42.5% down in the past two weeks.
Looking at the bigger picture, data from DefiLlama shows that the total value locked (TVL) in DeFi protocols has sunk by roughly $25 billion since the start of the year, currently standing at $226.92 billion.
A closely followed crypto strategist and the trader is predicting Curve (CRV) will surge to record highs while saying that a mid-cap altcoin looks bullish.
Pseudonymous crypto analyst Credible tells his 289,800 Twitter followers that Curve, the governance token of decentralized exchange Curve Finance, looks strong after taking out a key resistance area around $6.
“At current prices,CRVis the most asymmetric risk-reward coin in the space right now, in my opinion. A combination of the charts, fundamentals and the ability to earn 50% APR [annual percentage yield] while you wait for price appreciation is something that is incredibly hard to find in this space.
CRV has completely recovered from the drop after bouncing in my target zone. We will be in price discovery soon. I’ll see you all at double digits…”
Source: Credible/Twitter
At time of writing, Curve is trading at $6.12. A move to $10 suggests a potential upside of over 63%.
Credible is also keeping a close watch on decentralized public network Hedera Hashgraph (HBAR). According to the crypto analyst, HBAR is poised for at least a 25% increase from its current price of $0.32.
“HBAR looks fantastic.
We bounced beautifully off the support zone I first marked off nearly two weeks ago.
As I said in that post, my expectation is that we are headed to $0.40+ on this relief rally.
Let’s go HBAR-barians.”
Source: Credible/Twitter
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As 2022 gets underway, the decentralized finance (DeFi) sector of the cryptocurrency ecosystem appears to be gaining momentum in what could be an echo of the bullish market seen in seen in early 2021.
Data from crypto market intelligence firm Messari shows that over the past 30 days, 5 out of the top 10 DeFi protocols have seen their tokens post double-digit gains. This is in spite of the struggles that Bitcoin has faced, a dynamic which usually places bearish pressure on the wider crypto market.
Top 10 DeFi assets. Source: Messari
A deeper dive into the data shows that AAVE, Curve (CRV) and Spell Token (SPELL) have outperformed a majority of the field but what’s behind these bullish outbreaks?
In the case of AAVE, the Dec. 28 introduction of real-world assets (RAW) to the protocol represented the next advance in DeFi capabilities. Users will now be able to borrow against tokenized forms of traditional assets such as real estate, cargo, freight invoices and payment advances.
Curve and Abracadabra Money’s integration of stablecoins across the DeFi ecosystem have elevated their status as integral components of the DeFi and this is reflected in reflected in the price growth of their native tokens.
Rising metrics highlight DeFi’s building strength
Further evidence of the building momentum in the DeFi space can be found by looking at various metrics within the ecosystem. These metrics include active users and total value locked.
According to data from Dune Analytics, the number of uniques users in DeFi has continued to climb higher over time and is currently at a record high of 4,304,478 unique wallets.
Total DeFi users over time. Source: Dune Analytics
The activity shown on decentralized exchanges (DEX) has also been on the rise over the past few months. Data from Dune Analytics shows that May 2021 was the only month with a higher DEX trading volume than was seen in November and December 2021.
Monthly DEX volume by project. Source: Dune Analytics
As a way to see how far the DeFi ecosystem as a whole has grown in the last two years, the volume traded on decentralized exchanges in the first four days of January has already surpassed the volume seen during the entire month of July 2020, when the “Summer of DeFi” was starting to gain momentum.
Related:Total value locked in DeFi. Source: Defi Llama
According to data from Defi Llama, the current TVL for all of DeFi sits ast $255.87 billion, just $4 billion lower than its all-time high of $259.41 billion which was set on Dec. 2, 2021.
The leading protocols in terms of TVL are Curve with $24.42 billion, Convex Finance with $21.23 billion, MakerDAO at $18.28 billion and AAVE with $14.62 billion.
The overall cryptocurrency market cap now stands at $2.234 trillion and Bitcoin’s dominance rate is 39.4%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
The stablecoin yield optimizer Convex Finance has become the second-biggest protocol by total value locked.
Convex has roughly $21.3 billion locked value, trailing only Curve Finance.
The protocol has taken a central role in a battle for DeFI liquidity that’s been dubbed the “Curve wars.”
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Convex Finance is now the second-largest DeFi protocol with over $21 billion in total value locked.
Convex Finance Jumps to Second-Ranked TVL
Convex Finance now holds the second-highest amount of liquidity in DeFi.
The stablecoin yield optimizer hit $20 billion in total value locked for the first time over the weekend and now holds around $21.3 billion. The most liquid DeFi protocol, Curve Finance, holds just over $24 billion. After the latest jump, Convex holds more value than the likes of Aave and MakerDAO—two early DeFi projects that launched on Ethereum and are often referred to as “blue chips” of the ecosystem.
Convex works in tandem with Curve in that it lets liquidity providers maximize the yields they can earn on Curve’s stablecoin pools. Curve’s native token, CRV, gives token holders a claim on a portion of the trading fees, staking rewards, and voting power in the protocol’s governance. CRV holders are required to lock up their tokens for up to four years as part of a mechanism called vote escrow.
While Curve has been around since DeFi first started to gain traction on Ethereum, Convex is part of a newer group of projects that fall under the so-called “DeFi 2.0” banner. It launched in May 2021 and created value by letting CRV holders earn high liquidity mining rewards without extensive locking periods. That means CRV holders and Curve liquidity providers can deposit their tokens via Convex to earn Curve’s trading fees, CRV token rewards, and CVX tokens. This incentive system explains the protocol’s explosive growth over the last eight months.
Convex is not the only DeFi project to have sought liquidity from CRV holders. Other established projects like Yearn.Finance and StakeDAO have competed with Convex by offering incentives to attract CRV holders to lock their tokens, while Dopex Finance has given market participants a way to profit from via options vaults. This environment has been dubbed the “Curve wars,” where projects compete to ensure that their Curve Pools receive more CRV rewards.
Convex’s CVX token has benefited from the recent activity and growth in the protocol’s total value locked. According to data from CoinGecko, it’s currently trading at $48.05, up 115.9% in the last 30 days.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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A popular crypto analyst is detailing a set of new predictions for two large-cap crypto assets.
The trader, pseudonymously known as Smart Contracter, tells his 184,000 Twitter followers that Binance Coin (BNB) will likely hit a new all-time high (ATH) well before Bitcoin (BTC) surges above its current record high of $69,044.
“BNB [is] going to send to new ATH from here, probably going to hit it long before BTC does.”
Binance Coin, which is the native crypto asset of the Binance ecosystem, hit its current record high of around $687 in May of 2021 and is trading at $636 at time of writing.
The trader is also bullish on the core crypto asset of the Ethereum-based decentralized finance protocol Curve DAO Token (CRV).
Smart Contracter says that when paired against Bitcoin, CRV appears primed to break out from a 400-day range.
“400-day CRV breakout on the BTC pair underway.I’m ready for the fireworks.”
CRV is trading at 0.00009613 BTC ($5.65) at the time of writing.
Smart Contracter says that the DeFi token is likely on the verge of surging on the Bitcoin chart after an accumulation phase that had lasted over 365 days.
“CRV daily bull flag breakout on the BTC pair plus 12 month+ accumulation. Valhalla awaits.”
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Featured Image: Shutterstock/PHOTOCREO Michal Bednarek
