Most DeFi Coins Dropped 3-10% Despite The Bitcoin Price Surge
Most DeFi coins dropped by 3-10 percent despite Ethereum and Bitcoin pushed higher over the past day. Both of the cryptocurrencies gained about 5% over the past day as the legacy markets such as the S&P 500 pressed higher so let’s check on the altcoin news analysis today.
Most DeFi coins, however, dropped despite the Bitcoin rally. The data from the charts show that ThorChain, Waves, 0x, Maker, and Synthetix Network Token dropped over the past day. The losses range from three to 10 percent as the drop came despite the strength in BTC or ETC prices which previously managed to bring the altcoins higher.
The co-founder of the crypto data firm CoinMetrics Jacob Franek, set on the matter of high transaction fees that limit Ethereum’s upside potential during this phase of growth. Franek commented in a reply:
“Not yet just saying it places a natural hard cap on how far this can run. Traders will only pay that much if they’re perfoming significantly well.”
There’s been some speculation that SushiSwap debacle which the crypto market saw last week is throwing shade on the rest of the Defi coins and investors grow suspicious. These investors could have taken money off the table or are less willing to take on the Defi bets so that’s how the drop in ETH-based coins happened. The long-term trends on the DeFi space remain positive still, according to analysts. Qiao Wang, the ex-head of product at the crypto research company Messari said:
“From an investment point of view, BTC pre-2013 and ETH pre-2015 were once-in-a-lifetime asymmetric bets. DeFi pre-2021 is once-in-a-decade IMO (until proven wrong). If you’ve missed the first two don’t miss the latter.”
From an investment point of view, BTC pre-2013 and ETH pre-2015 were once-in-a-lifetime asymmetric bets. DeFi pre-2021 is once-in-a-decade IMO (until proven wrong). If you’ve missed the first two don’t miss the latter.
— Qiao Wang (@QwQiao) September 9, 2020
Others in the industry believe that there are fundamental factors that will drive the crypto market segment to exponential heights in the next few years. In the recent cryptocurrency news, we saw that DeFi bloated gas transaction fees on Ethereum which would challenge the growth of the industry as the solutions include optimized smart contracts and bundled transactions. ETH 2.0 could help address the scaling issues. Right now, the decentralized finance space is gaining traction with more than $8 billion in total value locked and it is now testing the limits of what Ethereum’s network is capable of.