Bitcoin’s latest bull run has made history, with the price of the cryptocurrency touching unprecedented levels day after day. In fact, the last 24 hours alone have seen BTC surge to break the $ 24,000 mark on some crypto-exchanges.
Following the Bitcoin rally, DeFi was marked with a new all-time high (ATH) for Total Locked Value (TVL), with the same approaching $ 17 billion, at the time of writing.
However, according to View Base’s crypto-trading analytics platform, funding rates for altcoin’s flat swaps look over-the-top right now. What does this mean? Well, it’s likely that FOMO-ed traders were altcoins after losing the Bitcoin pump, hoping to play catch-up.
While Bitcoin has risen 25% over the past week, DeFi coins such as YFI and AAVE were up only 10%, a difference that suggests DeFi tokens have fallen behind Bitcoin over the past week.
So uncertainty about how potential US Treasury regulations might affect DeFi might have something to do with it. However, despite everything, most developments this week have largely stayed bullish for Ethereum, the network on which most DeFi is built.
The world’s second-largest cryptocurrency by market cap touched a new high for the year recently, trading at $ 676 on December 17th.
My own view is that BTC is a perfect parallel tier but ETH could be bigger in market cap in 10 years for the above reasons.
Money and collateral are just the base layer. Everything builds on top of it.
The value store is parallel, the trust layer and value exchange are larger
– Raoul Pal (@RaoulGMI) December 11, 2020
In fact, according to the likes of Raoul Pal, ETH could pass Bitcoin in terms of market cap in 10 years, with the analyst claiming that he sees Bitcoin as a store of parallel value base tier while ETH is the trust tier provides for the exchange. of value.
Another data point to consider when exploring the potential reality of such a claim is the remarkable growth in Bitcoin Wrapped (WBTC) this year. Since Bitcoin cannot be sent directly to the Ethereum blockchain, Bitcoin users have to convert BTC to wBTC to access DeFi services running on Ethereum.
Wall Street also appears to be turning its attention to ETH as the CME Group recently announced the addition of Ether Futures to its institutional exchange, which will be available from February 2021.
While the market needs to wait until launch to fully quantify the impact of this on the ETH price, positive market sentiment and interest remain prevalent today.