Altcoins Are Getting More Expensive Again, Especially in Decentralized Finance

Altcoins Are Getting More Expensive Again, Especially in Decentralized Finance

Source: Shutterstock

Following the rise of bitcoin, other coins began to rise. The cryptocurrencies of DeFi projects have become much more active. Experts predict their further rise and the fall of BTC.

Over the month, bitcoin has grown by 40%. It is highly likely that traders and investors will take profits. In this case, a fall in BTC is inevitable, about 30%. Now, according to many experts, including the analytical unit JPMorgan, bitcoin is overbought by 10-30%. In addition, market volatility is growing due to the release of US economic data. Unemployment data and other information will become public on November 12-13.

As it was in the past, when bitcoin falls, altcoins can rise. Now the crypto market is ready for a recovery in interest in DeFi. Earlier in October, these altcoins were falling amid rising BTC. Some of them have fallen in price several times. For example, the YFI coin fell from a record of $44K in September to $8K in early November. But now the YFI cryptocurrency has gone up again and has grown very quickly by more than 80%. Investors love DeFi coins for the fact that they are growing rapidly. By the way, it is fair to say that all cryptocurrencies associated with digital finance are growing at once generally.

Cryptocurrency SNX has grown by more than 60% and is worth over $4.2, AAVE showed the dynamics of 105% and now costs over $50. According to the analysts of the DTC.capital cryptocurrency fund, it is possible that the decline in bitcoin and the growth of DeFi tokens are starting right now. DeFi projects may hit all-time highs. Rapid growth and the possibility of successful speculation make the DeFi space attractive to investors and traders.

DeFi tokens grew in the summer months unexpectedly for the market, then their growth was 70-80%, but there were some tokens that grew by hundreds of percent. Now the market already knows about the potential of DeFi. Their growth could be even faster than in the summer because this area now looks more understandable for investors. Analysts identify the same projects as in the summer as growth leaders. Among them are the already mentioned Aave (AAVE), Synthetix Network Token (SNX). Plus, ChainLink (LINK), Flamingo Finance (FLM), Frontier (FRONT), Loopring (LRC), REN (REN), UNI (UNI), and Venus (XVS).

The most optimistic analysts are confident that the growth of DeFi will continue in 2021. Moreover, it is highly likely that this growth will benefit the entire crypto market, since these tokens give quick profits and motivate investors to invest in them and shift from fiat instruments, including gold and blue chips. DeFi allows diversifying investments also for those who focus only on the cryptocurrency market. The situation with the leading cryptocurrencies is becoming more complicated, but investors already trust this market and they will look for suitable investment opportunities.