A number of decentralized finance (DeFi) assets surged on Tuesday while major cryptocurrencies—including Bitcoin and Ethereum—experienced losses. Decentralized lender dYdX, which runs on Ethereum, was at the time of writing trading for $3.34, having gained nearly 7% in 24 hours. Over the week, the protocol’s native token, ETHDYDX, had boomed by 42%, CoinGecko data showed. Elsewhere, Maker (MKR) also experienced a surge: at the time of writing, it was only up over 1%, trading for $1,366, but had shot up earlier on Tuesday morning Eastern Time to a high of $1,423. And decentralized exchange PancakeSwap (CAKE) was also up nearly 3%, coming in at a price of $2.24. DeFi refers to the projects in the cryptocurrency space which want to replace traditional financial services, such as borrowing, lending or banking. Such projects are new, experimental and prone to hacks—which means respective coins and tokens are volatile.
Bitcoin, the largest digital asset by market cap, had lost more than 2% of its value by the time this story was published, and was trading hands for $36,049. And Ethereum, which last week pushed past $2,000, was down nearly 3%. It is priced at $2,041 per coin. Last week ETH saw major gains on news that BlackRock Advisors, a division of the Wall Street titan, was preparing to file an application for an Ethereum ETF. The iShares Ethereum Trust application is BlackRock’s first official application for an Ethereum ETF.
Elsewhere, major coins and tokens were having a rough morning. Solana (SOL), which last week blew up in value, was trading little over $56 per coin, up less than 1%. Even when ETF optimism cooled for Bitcoin and Ethereum, Solana has held onto its gains. SOL has surged nearly 160% over 30 days. For a few days, it briefly overtook the market capitalization of major stablecoin USDC. But it has since dropped below it again. As of this writing, SOL has a market cap of $23.8 billion and USDC has a market cap of $23.9 billion.
This news means that while Bitcoin and Ethereum have experienced losses, DeFi assets such as dYdX, Maker, and PancakeSwap have surged. This is seen as a positive sign, as DeFi projects are new and experimental, and their respective coins and tokens can be volatile. Last week’s news of BlackRock filing an application for an Ethereum ETF also contributed to the DeFi surge.
Edited by Stacy Elliott.
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You can read more about this topic here: Decrypt: Bitcoin and Ethereum Lag While DeFi Tokens dYdX and Maker See Gains
