Crypto Weekly: The Bitcoin Flat and Hyip About DeFi
The last week of the summer did not any surprises in the crypto market. Bitcoin continued to remain flat and virtually unchanged in its value over this period. Ethereum broke out through the resistance at $400, and again consolidated in the $410 — $420 range.
A lot of news was coming from the DeFi-related industry, so at the beginning of last week, the volume of funds blocked in DeFi projects exceeded $7 billion. But that was not the endpoint. Within 5 days, this value increased immediately by 30%, reaching $9 billion.
DeFi continues to grow at a rapid pace and is attracting more and more people. Indirectly, their popularity can be judged by the increased fees on the Ethereum blockchain. Currently, the average transaction cost is $6 and this is a huge number for the crypto industry. For example, on Bitcoin, the average commission is now $2 per transaction and that also is very high.
One solution was offered by Coinbase and Circle, which offered to pay commissions not in Ethereum, but with their USDC stablecoin. According to the creators, this can somewhat reduce the greatly increased commissions in the Ethereum network.
Around the same time, it became known that the most popular DEX Uniswap surpassed the trading volume of Coinbase for the first time. The daily trading volume of Uniswap was $426 million, against $348 million from Coinbase. This can be called a historical event, because previously, DEX has never even come close to such values in the entire history of the crypto industry.
Another well-known project, yEarn Finance, continues to attract the attention of the entire community. Yesterday, August 30, the token of this project reached $38,000, after which it fell by 20%. YFI is currently trading at $33,700. Such a sharp growth allowed the project to reach 25th place in terms of capitalization, and 11th place in terms of daily trading volume.
The high activity of investors in the DeFi segment also continues. Two projects at once this week, received direct funding from investors and a venture fund for investing in DeFi projects raised $8 million. The hype around DeFi continues to grow and this may be just the beginning.
Bitcoin
During the week, Bitcoin’s price has fluctuated in the $11,700 — $11,200 range and trading volume has remained low at around $20 billion per day.
On the 4-hour timeframe, you can clearly see that the RSI and Stochastic indicators are in the overbought zone. This suggests that in the near future we will see a new decline in Bitcoin. According to current data, the first target will be near $11,000.
If this support level is broken, then the price can rush directly to $10,000. This is exactly the level from which Bitcoin began to rise in late July.
Why do we think Bitcoin should fall?
The reasons are pretty simple. There is still no liquidity in the market, many traders and investors left the crypto industry after the Bitcoin halving and its sudden crash in March. Also at the moment, there are absolutely no fundamental reasons due, to which the growth of Bitcoin can be possible.
The last week of August was held under the DeFi slogan. There are a lot of events taking place in this segment, and this does not go unnoticed by the community. The hype came in the summer, when interest in Bitcoin traditionally fades away. However, in the coming weeks, many investors will return to the market after the summer period and then the vector could possibly shift in the other direction.
