Max E.Mon, Dec 20, 2021 5:13 PM
Bitcoin Is Falling Again, but Some Altcoins are Showing Success
The crypto market seems to be slowing down amid rising inflation and Omicron strain fears that are undermining investor confidence. So, over the past 7 days, the price of Bitcoin has decreased by 5%. Over the weekend, BTC failed to break through the resistance at around $ 48.5 thousand, and now it has dropped below the level of $46092 thousand and does not show any prerequisites for growth in the near future.
ETH has nothing to brag about either. For a while, this asset even fell below the $ 3,700 level due to the meager trading volumes on the exchanges. Now its price has recovered, but it is still hanging below the resistance level of $ 4000. Many large (by market capitalization) altcoins also fell. Only a few isolated assets were able to survive the turbulence.
One of them is Yearn.finance (YFI). Its price today is $35,307.10. It is up 8.2% in the last 24 hours. YFI price is up 64% in the last 7 days. The current rise in the asset price is influenced by the new buyback program. An innovative approach to buyback allows users to re-own and dispose of assets.
Yearn.finance is a well-known and powerful player in the DeFi space. It is a DeFi suite of products based on the Ethereum blockchain. The set includes tools for yield farming, lending and blockchain insurance. The platform is completely decentralized and managed by the DAO.
YFI already has growth potential. Commissions alone generate an average of $ 100 million for the project, and the total cost of the protocol reaches nearly $ 5 billion. Market capitalization is approximately $ 781 billion. These figures indicate that the project has sufficient liquidity to successfully implement the buyback programs, and the market will react positively to this news.
Terra (LUNA) also demonstrates remarkable results. Its price today is $73.34. LUNA has recorded a 10% growth in the last 24 hours despite the deteriorating market conditions. During the week, the price of the token increased by 26%, and today it took the 9th position on Coinmarketcap.
Terra overtakes Binance Smart Chain for DeFi activity and the project's stablecoin comes close to overtaking Dai. It has become the second-biggest blockchain by total value locked (TVL): $17.1 billion. Its TVL is up 38.6% from a week ago, giving it a 7.1% share of the DeFi market.
It looks like the time has come for altcoins. However, how long it will last directly depends on one important on-net factor – BTC's bullish divergence. In the face of such inflation, losses cannot be avoided even for the US dollar. Hopefully, the negative correlation between BTC and DXY will shed some light on the future of BTC.