Earlier this week, all eyes were on Bitcoin, not DeFi. The leading cryptocurrency shot a handful of percent higher while altcoins actually began to move lower against the dollar, sometimes by 5-10%. Some DeFi coins actually dropped 15% on the day that Bitcoin shot 2-3%.
This trend did not persist, though. Altcoins have begun to recover against the leading cryptocurrency over the past day, with some actually managing to outpace the previously-dominant Bitcoin.
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom
DeFi Coins Bump Higher Amid Bitcoin Surge
CoinGecko data shows that DeFi coins are bumping higher amid the Bitcoin surge that took place on Wednesday, which brought prices higher by over 8%. While Ethereum is still underperforming BTC, top DeFi coins are surging higher.
Ren Network’s REN token, Ampleforth (AMPL), Aave’s AAVE, Chainlink (LINK), and many other coins have gained around 10% in the past 24 hours. For context, again, BTC is up 8% while ETH has gained 6%.
This recovery comes shortly after analysts said that Bitcoin is likely going to outperform the average altcoin moving forward. Technically, this sentiment has not been invalidated yet as BTC remains a top-performing crypto asset as not all DeFi coins are pumping.
Su Zhu, CIO of Three Arrows Capital, said:
“$BTC going up swiftly is not only not bullish for alts but it’s bearish. reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant.”
$BTC going up swiftly is not only not bullish for alts but it's bearish
reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant
— Su Zhu (@zhusu) October 19, 2020
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ETH & DeFi Fundamentals Remain Strong
DeFi and Ethereum fundamentals are strong.
Crypto-asset analyst Qiao Wang said that he thinks an institutional influence has landed in the DeFi space:
“It seems that Silicon Valley finally discovered DeFi. Relatively to crypto natives, they are characteristically late. They were late with BTC, ETH, and this time DeFi. But if history is any indication, they’ll hype it up and create a huge bubble out of it in the coming years.”
We’re seeing the institutional influence with the introduction of large crypto institutions and venture capital companies into DeFi through investments, comments in media, and so on.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock Price tags: lendusd, lendbtc, aaveusd, aavebtc, aaveeth, renbtc, reneth, renusd, linkusd, linkbtc Charts from TradingView.com Top DeFi Coins Finally Make Recovery: Aave, Ren, Chainlink Surge 10%