DeFi Boom Benefits ETH Prices as Gas Fees Soar
We have once again seen Ethereum gas fees skyrocket as DeFi yield-farming projects have clogged the network. The last time we saw such expensive gas fees was this past weekend. The price of Ether ( ETH) is benefiting, having risen another 4.23% in the past 24 hours. After reaching a high of $488.70, ETH has now retraced to $476.
After TRON founder Justin Sun promoted his DeFi project, SUN, which will go live this afternoon, the price of TRON ( TRX) spiked by more than 20% in 24 hours. Potential yield-farming participants have been buying TRX and are preparing to rush into SUN’s farm as soon as it goes live. Some of the TRON ecosystem’s yield-farming token prices have skyrocketed. For example, the price of PEARL has risen to $3,000 on some exchanges.
BTC is currently playing the role of a follower after rising 0.51% overnight. The market-leading cryptocurrency made a correction after testing the $12,000 resistance level twice. It is currently back near $11,850. At the same time, Bitcoin’s share of the overall crypto market capitalization fell to a year-to-date low of 54.6%.
Some major altcoins unrelated to DeFi also saw sharp rises overnight. Bitcoin Cash ( BCH) and EOS are up 4.23% and 4.12%, respectively. The total crypto market capitalization increased by another 1.5% to $400 billion, as per data from CoinGecko.
A number of DeFi tokens have seen big pullbacks due to their rapid price increases. Serum ( SRM), Compound ( COMP), Aave ( LEND), yearn.finance ( YFI) and Synthetix ( SNX) saw losses ranging between 8% and 12%. SushiSwap ( SUSHI), which exploded yesterday, has fallen all the way down to $7.70 after hitting a high of $13.35.
Some DeFi tokens are still rising at an accelerated rate. DFI.money ( YFII) surged over 120% — from $3,500 to around $8,000 — overnight. YFValue ( YFV), which just went live on OKEx yesterday, is up more than 30%.
Due to the continued emergence of various new yield-farming projects and copycats, the pace of money in and out of the farms has increased. It makes the prices of various tokens extremely volatile.
Top altcoin gainers and losers
Apart from YFII and YFV, the faster riser overnight was Primas ( PST), which is up 25.43%. PST has achieved a 40% increase over the last seven days.
Yesterday’s winner, TokenClub ( TCT), made a 23.76% correction — leading today’s top losers list. TCT had surged from $0.01 to as high as $0.04 in five days before pulling back to its current $0.02.
BTC technical analysis
BTC is showing strong resistance between $11,900 and $12,000, with repeated unsuccessful attempts to break through. This may undermine the confidence of buyers. However, due to the continuous money inflow into ETH and TRX, the crypto market may also find it difficult to see a major sell-off in the near term. Bitcoin may continue to consolidate sideways.
The intraday threshold is located at $11,800. A pullback below $11,750 is not an optimistic sign in the short-term. The upper strong resistance is near $12,300.
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