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DeFi tokens soaring, Ethereum and Bitcoin trending slightly[Market trends]

Cryptocurrency

DeFi tokens Yarn Finance (YFI) and EOS (EOS) have risen by more than 30% on the 11th. Ethereum (ETH) and Bitcoin (BTC) rose only modestly.

● Yarn Finance (YFI) is currently trading at around $ 78,849 as of 21:00 Coordinated Universal Time (UTC) (6 pm Japan time, same hereafter), up 48% in the last 24 hours.

● EOS has traded at around $ 12.82, up 36.6% in the last 24 hours.

● Ethereum (ETH) traded at around $ 4068, up 0.66% in the last 24 hours.

● Ethereum 24-hour range: $ 3810 to $ 4,074 (CoinDesk 20 data).

● Bitcoin (BTC) traded at around $ 56,724, up 1.3% in the last 24 hours.

● Bitcoin 24-hour range: $ 54,657- $ 56,855 (CoinDesk 20 data).

Yarn finance rises sharply in Ios

Yarn Finance (green) and Ios (blue) performance from the beginning of the year
Source: TradingView

The biggest rises in CoinDesk 20 on the 11th were Yarn Finance (yearn.finance / YFI) and Ios (EOS).

Richard Rosenblum, co-founder of liquidity provider GSR, commented that the rise in YFI was probably due to its ease of use.

“It’s becoming a Tesla in automated investment management, but crypto assets are moving much faster than cars, and other DeFi projects are catching up,” Rosenbram said.

Regarding Ios, he pointed out that Block.One, the developer of Ios, has raised funds to establish a new trading infrastructure subsidiary, Bullish Global. Ios is a DeFi (decentralized finance) development platform and a rival to the Ethereum blockchain.

Trading firm OneBit Quant’s Peter Chan said it would be difficult for DeFi to continue to grow on Ethereum and explained why alternative platforms like Ios are growing steadily. DeFi growth still seems to be spurring Ethereum congestion.

“Trading with high transaction fees is a big challenge. Trading on the decentralized exchange Uniswap now costs more than $ 200 per transaction. I can’t think of it.”

According to ETH Gas Station, Uniswap users have paid $ 2 million in transaction fees over the past 30 days.

Ether’s trading volume exceeds Bitcoin

Ethereum price transition on crypto asset exchange Bitstamp (May 8 ~)
Source: TradingView

Ethereum (ETH) is above the 10-day and 50-day moving averages, a bullish signal in technical analysis.

“Ethereum has more than doubled and become known to the public since it hit a record high in early April. Price increases are underpinned by positive short-, medium- and long-term momentum. “” Said Katie Stockton, a technical analyst at Fairlead Strategies.

Ethereum’s trading volume reached $ 80 billion on the 10th, surpassing Bitcoin’s $ 78 billion.

Bitcoin (black) and Ethereum (red) trading volume
Source: CoinGecko

Ethereum’s trading volume first exceeded Bitcoin on May 4th. Mr Stockton pointed out that Ethereum has risen sharply since early April and said prices could be on a downtrend.

Ethereum price changes (past 3 months)
Source: CoinDesk Research

“It will be important for Ethereum to stay at around $ 4,000 next week. It will not be until the weekend that Ethereum will mature into a reliable infrastructure network for DeFi and establish a solid position. If not, it will help us break through $ 5,000 by the end of the month, “said John Willock, CEO of crypto asset service Tritum.

Bitcoin fluctuation range, $ 6000

Bitcoin was above the 10-day moving average but below the 50-day moving average, a flat signal in technical analysis.

Over the past two weeks, Bitcoin’s volatility has remained at $ 6,000, fairly stable between $ 53,000 and $ 59,000, according to CoinDesk 20 data.

Bitcoin price changes over the last two weeks
Source: CoinDesk 20

There is a view that relatively narrow price fluctuations enhance the nature of Bitcoin’s “value preservation”, but in reality Bitcoin’s 30-day volatility has risen since April 16. Bitcoin’s 30-day volatility was over 72%, the highest level since March 27, when US trading hours closed on the 10th.

30-day volatility of Bitcoin (black) and gold (blue)
Source: CoinDesk Research, St. Louis Fed, Yahoo Finance

Analysts are also looking at the potential for higher Bitcoin dominance (market share: the ratio of Bitcoin’s market capitalization to total crypto assets). Bitcoin dominance is below 45% at the time of this writing (TradingView data).

“In general, Bitcoin dominance thinks there is room for a bit of a rise as a fix to the current altcoin boom, but it will be short-term and medium-term. Altcoin has high returns. So it will outperform Ethereum and Bitcoin, “said Andrew Tu of investment firm Efficient Frontier.

| Translation: coindesk JAPAN
| Editing: Takayuki Masuda, Shigeru Sato
| Image: TradingView
| Original: Market Wrap: Yearn, EOS Rise Over 30% While Ether and Bitcoin Eke Out Small Gains

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