With Bitcoin hovering below $ 60,000 and key altcoins appearing to be stuck in consolidation, the DeFi range and several other DeFi tokens have caught the market’s attention. Accordingly, capital flows into DeFi projects like Crypto.com and Curve DAO as BTC’s trajectory weakens.
This isn’t the first time this has happened. In fact, some of the top DeFi tokens have won more than BTC.
For example, UNI’s price rose almost 100% from late July to August, while BTC was only able to increase around 50%. This time around, the loss of BTC gave the CRO of Crypto.com and the CRV of Curve DAO an aura. However, there are many other reasons for the price increase.
Development of DeFi
Data from Defillama shows that Total Value Locked (TVL) in DeFi logs has topped over $ 255 billion in recent months due to TVL’s strong growth. Notably, CRV accounted for 8.11%, or $ 20.75 billion, of TVL.
Additionally, in terms of liquidity, CRV appears to lead the way with $ 18.4 billion in DEX liquidity (decentralized exchange), according to the protocol. This protocol is ahead of Uniswap (V2 and V3 – just hit $ 10 billion in liquidity) as well as PancakeSwap, SushiSwap.
At CRO, token prices rose shortly after Crypto.com announced a multi-purpose arena in downtown Los Angeles that would be renamed Crypto.com ARENA over the next 20 years through a partnership with LA Kings and Los Angeles Lakers.
Additionally, the supply and circulating market capitalization of CROs increase with their price. Circulating market supply increased from $ 5.12 billion to $ 13.15 billion in just 2 weeks.
The source: Messari
Aside from the attention and hot talk of these two altcoins, CRO is the second most widely held asset of the top 1000 wallets on Ethereum after SHIB and shows high popularity.
The source: Whale statistics
A similar trend of both is low correlation with BTC and coincidence with price spikes. For CRV, the BTC correlation is near the all-time low and is recorded at -0.03.
The source: IntoTheBlock
The correlation of CRO with Bitcoin also decreased at the time of going to press, while the number of daily active addresses increased sharply.
The source: IntoTheBlock
In the past few weeks, CRV’s TVL has grown rapidly, which is a sign that institutional money is pouring into the ecosystem. CRO is currently seeing a high level of retail euphoria amid growing societal expectations.
For both, the high risk-adjusted return is also a reason why the crowd is moving towards DeFi tokens. However, will your rally be valid again after the rally of BTC and ETH?
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