Jan 25, 2021
Altcoins get the chance to surge while Bitcoin is wandering around $33k, searching for grounds to climb to $40k. Top-performing altcoins attract investment from investors.
The DeFi sector displayed significant gains after Bitcoin and Ethereum went parabolic during this month. DeFi has many valuable members that contributed to the performance of the whole area. The total value locked (TVL) in DeFi increasing as time passes. At the beginning of the year, DeFi had $15 billion TVL, and as a result of a successful ride of altcoins, TVL surged to $26 billion. If we consider that in the mid-December TVL was $13 billion, then the figure is doubled in almost a month. Now take cryptocurrencies one by one to describe price increase.
The lending platform AAVE has been impressive recently. From the 4th of January, AAVE began to display a price increase. In January, AAVE more than tripled its price from $86 to $350. Currently, the value of AAVE is $264. Flash loans and staking drove its price up. Flash loans increased significantly, which can be used for a bullish run of Bitcoin and Ethereum. According to Messari, the total amount of flash loans doubled from $790 million to $1,700 million since the 13th of November. If this bullish sentiment in cryptocurrencies stays, then AAVE will continue to gain value.
As one of the competitors for Ethereum, Polkadot, increased in price recently. The DOT was $5 on 28th December, and the price increased at high as $19 in 3 weeks. In this price surge, the role of Chinese investors was exceptional, according to Decrypt. This price surge made Polkadot as 4th largest cryptocurrency in market capitalization. After rising to $19, the holders of Polkadot did not sell them immediately, and the price consolidated around $18.
Chainlink is one of the altcoins that displays significant gains recently. The Link was $11 on 1st January and increased up to $25 on 25th January. It doubled the price in 25 days. According to Santiment, the daily created new addresses are created 143% faster than three months before. The price rise could be the possible reason for the increase in new addresses. The investment manager, Timothy Peterson, commented about Chainlink as “fairly valued” and he added that “there’s a bubble in bitcoin and Ethereum that is not present in LINK” on his Twitter post.
The DeFi field attracts many investors as time passes. The TVL increase as the trust of investor increase in decentralized finance.
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