Amid the DeFi Fall, Investors Focuse Sets on Bitcoin

October 31, 2020 3:58 PM UTC

The decentralized finance (DeFi) protocols had abrupted exponentially in summer 2020. However, the DeFi bubble is deflating as of now. In the last few weeks, total value locked (TVL) has plummeted by almost $1.5 billion, according to DeFi Pulse. 

Although the latest Harvest Finance hack exploded the daily trading volume of decentralized exchanges, mainly Uniswap and Curve Finance, more than 1700% to hit $5 billion but the DEXs boom lived for just a day. Data reveals that decentralized exchange trading volume is declining at a swift pace, indicating the fall of the DeFi sector.

Several DeFi tokens are also not performing well. After hitting the highest spike in September 2020, Uniswap’s UNI token drops to $2.32 from $7.82. Similarly, Sushiswap, Yearn.Finance, UMA, and Compound are also presenting notable losses of 94%, 75%, 74%, and 61%, respectively.

Bitcoin HODLers Jumps in Greater Numbers

The constant downward ride of the DeFi sphere suggests investor interest has turned back to Bitcoin once again. The price of leading cryptocurrency Bitcoin has rallied abruptly after PayPal crypto support news hit the market. Bitcoin has surged above $13,000 for the first since 2019. After jumping up to 24%, BTC is currently trading at $13,857, according to data from CoinMarketCap. Its market cap has also surpassed $250 billion.

Glassnode data shows, the number of Bitcoin addresses holding more than 0.1 BTC, worth $1,188, has hit an all-time high of 3,160,057 addresses as the price of Bitcoin surges. Whereas the number of addresses holding over 100 BTC, worth $1,188 million, reached a 6-month high of 16,159.

Pedro Febrero, an analyst at Quantum Economics, said that this is “a very bullish piece of news. The more buyers there are, the greater the chances that bitcoin prices will rise.”

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