Bitcoin is on the rise and suddenly some well-known Decentralized Finance (DeFi) coins are following suit. You can find out what happened in the DeFi-Market this week and how things will continue in the DeFi-Monitor.
The US elections have euphorized the crypto market. The crypto reserve currency Bitcoin is chasing from one to the next annual high and the market for decentralized finance (DeFi) is gradually following suit.
Bitcoin dwarfed DeFi in the past few weeks – is that changing now?
The correlation between Bitcoin and the financial markets is a frequently recurring topic of contention. Lately, however, the correlation between DeFi and Bitcoin has been the focus of investors again and again.
During the recent rally, Bitcoin correlated mostly negatively with DeFi tokens. Only the UNI token from Uniswap defied the trend of the previous weeks and showed a slightly positive correlation to Bitcoin.
But in the last few days the project seems to be gaining enormous momentum and at the time of going to press it had increased its share price by more than 35 percent in the last 24 hours.
The Aave lending project, the Synthetix derivative platform and Yearn.Finance also benefit from this sudden trend reversal.
The entire DeFi market seems to be regaining hope and it remains to be seen whether this development will mark a sustainable trend reversal.
Overall, it appears that the total deposited capital in decentralized finance applications continues to grow. This makes it more likely that there will be more highs in the emerging DeFi sector soon.
In addition, the DeFi Pulse Index Token (DPI), which maps the eleven largest DeFi tokens as an index, has also increased significantly in recent days.
The tokens UNI, MKR, SNX, AAVE, COMP, YFI, REN, LRC, KNC, BAL and REP are currently in the index, which can be used as an overall indicator for the DeFi sector.
New record at Uniswap
The largest decentralized exchange in the crypto world is also setting a new record. At the time of going to press, there was more than $ 3.08 billion in the Uniswap log:
Never before has so much money been deposited in a single DeFi protocol.
Lightning Labs wants to create a DeFi alternative for Bitcoin
For many, the Bitcoin Lightning network is already dead. Still, Lightning Labs announced a new update this week. Through a peer-to-peer marketplace, users of the Lightning Network should be able to make their Bitcoin available for payment channels.
This should make it possible, similar to Ethereum liquidity pools, to receive returns for the liquidity made available.
However, the service is still in the alpha phase and the inventors have already pointed out some risks that will only be resolved over time.
Picture by Pixabay
Post source: Bitcoin takes off and DeFi is catching up – is the race to catch up now?
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from The Bitcoin News – Bitcoin and Blockchain News https://thebitcoinnews.com/bitcoin-takes-off-and-defi-is-catching-up-is-the-race-to-catch-up-now/
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