The price of BNT, Bancor’s native sign, rose 86% in just two days from $ 1.02 to $ 1.919. The rally was fueled by a combination of Coinbase listing BNT and DEX Bancor’s rising volume.
Coinbase’s listing was the main catalyst behind BNT’s 48-hour strong rally. Almost immediately after its announcement, the ticket price increased by about 16% after spiking to as much as $ 3.70. Coinbase said on December 16:
“Starting today, Coinbase supports Aave (AAVE), Bancor (BNT), and Synthetix (SNX) at Coinbase.com and Coinbase Android and iOS apps. Coinbase customers can now buy, sell, convert, send, receive, or store AAVE, BNT, and SNX. ”
While the surprise listing is a short-term catalyst, BNT has been rallying since early November due to Bancor’s momentum.
What is Bancor and why is it surging?
Bancor can be described as a decentralized exchange, or DEX, and an automated market maker, or AMM. On the Bancor network, anyone can trade ERC-20 tokens and various crypto assets in a decentralized ecosystem.
With the resurgence of devolved funding, Bancor’s daily volume and liquidity have steadily increased.
On November 19, Bancor said the protocol achieved a total of $ 60 million in custody. The team He said:
“Bancor has crossed $ 60M in TVL! Thousands of LPs are now enjoying: single-sided AMM exposure; defensive loss protection; BNT liquidity mining. ”
According to data from CoinMarketCap, Bancor has processed nearly $ 14 million in trades in the last 24 hours. For a decentralized liquidity protocol on a chain, daily trading volume above $ 10 million is relatively high.
For comparison, SushiSwap and Uniswap, the two largest DEX on Ethereum, process $ 44 million and $ 275 million per day, respectively.
Cutting a $ 20,000 BTC will give DeFi a boost
Decentralized applications and DEXs within the DeFi space would have more room to grow if Bitcoin (BTC) and Ether (ETH) started to rally in the short term.
Currently, Bitcoin and Ether aggregate below key resistance levels. Despite this, several market analysts expect to see new all-time highs soon amid several bullish signals.
Furthermore, economist and trader Alex Krüger cited Bitcoin’s ongoing $ 20,000 rebound and low future funding rates as likely catalysts that will drive the dominant cryptocurrency beyond its highest ever. He He said:
“The more time $ BTC spends below 20K and the lower the funding base and future as the price approaches 20K, the stronger the break up will become once it comes. It will come. ”
If there was a Bitcoin and Ether rally, the demand for DeFi would naturally soar. Many DeFi users often set cryptocurrencies, such as Wrapped Bitcoin and Ether, as collateral for additional exposure to cryptocurrencies.
When the market enters a clear bull cycle, demand for DeFi services would increase further as lending and trading volumes increase. Also, the risk of adding more collateral in Ether to achieve an edge typically decreases when its price increases.
As of Dec. 16, the total locked-in value across DeFi protocols is hovering just under $ 15 billion, its highest ever.