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DeFi Tokens Outperform Market Because of Adoption, Technology and Sentiment Change: Analyst

News
Tue, 06/09/2020 - 14:23
Vladislav Sopov
Anonymous cryptocurrency analyst Ceteris Paribus has explained to Messari's Qiao Wang, which catalysts have boosted DeFi token prices in Q1-Q2, 2020
DeFi Tokens Outperform Market Because of Adoption, Technology and Sentiment Change: Analyst
Cover image via stock.adobe.com
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An analyst has highlighted the top beneficiaries of the DeFi segment market capitalization upsurge and revealed some of its possible catalysts.

Altseason? No, DeFi season!

According to Ceteris Paribus, native digital assets of decentralized financial instruments significantly outperform the market in terms of prices. Kyber Network Crystals (KNC), Aave Protocol Tokens (LEND) and Loopring Coin (LRC) have gained more than 300% since June 2019.

DeFi Tokens outperform market
Image via Twitter

The calculations are based on data provided by the Messari and Coingecko analytical sources.

According to the estimations of Ceteris Paribus, all of the ecosystems of DeFi products gained $700M in terms of market capitalization. The mid-caps, i.e. the products with $10M-$30M in capitalization as of the end of 2019, benefit the most from this trend.

Only three projects see their tokens down compared to June 2020, namely, Acropolis, Synthetix and Cred.

Where is the trick?

Angel investor and analyst Qiao Wang asked Ceteris Paribus, which catalysts drive the token performance of DeFi assets. He responded, saying that an increase in the volume of assets under management, mainnet launch announcements and changing token structures contributed to this success.

Also, Ceteris Paribus noticed a switch in sentiment from Layer-1 products (i.e. new blockchains) to Ethereum-based application development. Depressed valuations amid the 2018-2019 bear market and the upsurge in liquidity may be also involved.

Elias Simos, a senior research analyst in Decentralpark, believes that fee-driven DeFi products are used to providing access to Ether flows.

Thus, Ethereum (ETH) works like money in the decentralized world, Mr. Simos concluded.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
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John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)