There have been a lot of changes in the DeFi space as of late. Now is a good time to compare this segment’s performance against Bitcoin. Albeit both are very different from one another, there will always be some interest in comparisons regardless.
Weekly DeFi Performance is Decent
There has been some renewed interest in decentralized finance as of late. After a few rough months, things are seemingly returning to normal, which is always intriguing to see. Sustaining this ongoing momentum will pose its own set of challenges, but it can be done if the community keeps doing what it has done in recent days.
To put this into perspective, the DeFi market cap sits above $16 billion again. This represents an increase by nearly $3 billion compared to seven days ago. A further confirmation of the renewed interest in decentralized finance and all of the different projects that make up this space. The next major milestone, which is $20 billion, may take a while to reach at this rate of growth, though.
As a result of this growth, the DeFi/ETH ratio has now surpassed 30% again as well. A solid change in momentum, albeit the current DeFi rankings aren’t necessarily complete or accurate. There will always be some debate as to which projects should be on this list, as there is some confusion and debate on that front. Even so, this healthy growth is promising.
With over $14.2 billion in TVL and a daily trading volume of over $3 billion, the DeFi industry appears to be in a good place. One thing to take into account is how Chainlink represents 31.3% of these figures. If that project is discounted, there is still a lot of work to be done. On the other hand, projects like INDEX, YAX, ALPHA, YFI, and LEND are all noting solid price gains as well.
Bitcoin is Doing Bitcoin Things
All of the attention this week has been put on the world’s leading cryptocurrency. Not entirely surprising, as Bitcoin put up another strong performance this past week. With a 4.4% gain in the books, the psychological barrier of $16,000 per BTC has been broken successfully. As is often the case, there will be some fluctuations for some time to come.
As the good news keeps rolling it, it seems unlikely Bitcoin will reverse course in the near future. The world’s leading cryptocurrency is putting up very solid momentum across the board. Pushing through to $17,000 may prove to be a matter of time. For now, it is still too early to draw any real conclusions as to where things will head next.
With both Bitcoin and DeFi noting solid growth in the past week, things are getting very interesting. This further confirms both market segments can easily coexist, even though some may prefer to see things differently. The final weeks of 2020 may have some fireworks to them if these trends continue.
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