Altcoin

DeFi tokens rally while Bitcoin bulls attempt to flip $19.5K to support


The world’s negative-yielding debt has soared to over $18 trillion according to Bloomberg. In such times, it is no surprise that the decentralized finance space, a place where mouth-watering yields can be found, has become an investor favorite. 

Due to high investor demand, Coinbase pro has recently added support for several DeFi tokens. Expanding its offering further, the cryptocurrency exchange has announced that it will extend support for Aave, Bancor, and Synthetix starting today.

History suggests that when Coinbase lists new tokens, their prices jump in the short term, a trend that can also be seen in the recent price action from AAVE, BNT and SNX.

Bancor has attracted increased investor attention after the launch of Bancor v2.1 and the introduction of BNT liquidity mining pool. The protocol has been adding two new tokens every two weeks to its liquidity mining program and this is attracting new investors. These initiatives have increased the total value locked from $15 million to over $85 million.

Crypto market data daily view. Source: Coin360

The excess liquidity sloshing around the globe has resulted in a bull market across several asset classes. Hence, the derivatives liquidity protocol Synthetix has attracted traders who are looking to maximize their returns trading various crypto and legacy markets.

Synthetix recently announced that it would invest 100,000 sUSD in the portfolio managed by a selected community member and the revenue generated by the dHEDGE portfolio will be awarded to the manager.

This program offers savvy traders an opportunity to increase their rewards by managing a large pool of Synths and enables other traders to benefit by investing in portfolios managed by successful traders, a win-win situation for everybody.

The third token making waves for its strong price action is SushiSwap’s governance token SUSHI. As reported by Cointelegraph, the exchange’s recent merger with the DeFi giant Yearn Finance has captured attention from bulls. This was recently covered in detail by Cointelegraph. Quantstamp has recently started an audit of SushiSwap protocol, which could further increase confidence in the platform.

Institutional investors have gradually warmed up to cryptocurrencies and several popular names have publicly disclosed their Bitcoin investments in the last few months. There is a possibility that some investors with a higher risk appetite could become interested in the DeFi space, which could boost the prices of these tokens.

While fundamentals are in favor of higher prices, let’s look at the technicals to ascertain the path of least resistance.