Fresh blood in the crypto market
August 31, 2020 @ 15:32 +03:00
Bitcoin lost the central stage of the crypto market as attention to the first coin and the leading altcoins decreased due to the appearance of new bright participants. The digital currency leaders list didn’t change for a long time, however, it seems that the situation is now beginning to evolve. The BTC price maximum was $20,000 but this level was easily broken by yearn.finance (YFI), which at some point exceeded $37,000.
Given the incredible, even by crypto market standards, 4,000% growth in just over a month, the main question that all participants are asking is: at what point will the correction begin? Answer – At any moment. Arthur Hayes, CEO of BitMEX, said that the coin can show growth up to $100,000. This is very alarming, as these are all signs of a bubble. At the moment, the growth has stopped, but no one wants to enter the market too early or too late.
Is it worth buying YFI or other DeFi tokens like Aave (LEND) or UMA (UMA) now? If the main purpose is to speculate on price, this can be very expensive, since the above projects are already successful. They are in the focus of attention of the global crypto community, have shown impressive growth in value, and the moment for investment in the initial stages has now passed.
It’s probably worth paying attention to DeFi projects that haven’t yet shown thousands of per cent increase. However, all crypto market participants, who have been late with investing in the current leaders of the sector, will try to do the same. bZx Protocol (BZRX) is already in the process of growth. You can also turn your attention to Balancer (BAL) and many other projects with lower capitalization. The list of DeFi projects can be found at defimarketcap.io.
The market hasn’t experienced a stir for a long time, and in the medium term, the total capitalization can grow significantly. Recently, there has been a demand for “fresh blood” and the market has satisfied this. Now there are several important questions: how stable will the bubble be before the emergence of really big money? And how long will the regulators wait in the case of a lot of DeFi projects “flying to the moon”?
The FxPro Analyst Team