Bitcoin Reaches 18-Month High, DeFi Tokens Surge
Bitcoin reached a milestone last night, closing in on $36,000 per coin for the first time in nearly 18 months. Although it has since dipped to $34,949, the cryptocurrency is still climbing fast with over a 2% increase in the past 24 hours.
The Rise of DeFi Tokens
However, the spotlight today is on decentralized finance (DeFi) tokens. DeFi refers to non-custodial tools on blockchain networks that enable buying, selling, borrowing, and lending of crypto assets without intermediaries. Uniswap, a decentralized crypto trading platform, is a key player in the Ethereum-based DeFi ecosystem.
Uniswap’s native token, UNI, is leading the surge among digital assets. It has seen a 12% increase in the past 24 hours and is currently priced at $4.54. Aave (AAVE), the token behind a decentralized lending protocol, has also experienced significant growth with a 12% gain and a trading price of $92.00.
Growth in the DeFi Ecosystem
The broader DeFi ecosystem has witnessed substantial growth over the past few days. According to DeFi Llama, the total value locked across all tracked chains has increased by nearly $1 billion since Tuesday and is up by 1.5% in the past day.
While Ethereum’s price can sometimes contribute to significant jumps in Total Value Locked (TVL), at present ETH is trading at $1,792.76 with a mere 0.4% increase.
Gaming and Metaverse Tokens on the Rise
Gaming and metaverse tokens are also performing well. Decentraland (MANA) has seen a 12% increase in the past 24 hours, currently priced at $0.32. It ranks among the top gainers across the top 100 cryptocurrencies by market cap.
Bitcoin ETF Approval Hype
The recent boost in crypto markets, led by Bitcoin, can be attributed to the anticipation of a potential approval of a spot Bitcoin ETF. Investors have long awaited a product that would provide exposure to Bitcoin in a safe and secure manner, similar to precious metals like gold.
Analysts from Bloomberg Intelligence and JP Morgan predict that the U.S. Securities and Exchange Commission may approve a Bitcoin ETF as early as next year.
Hot Take: DeFi Tokens Outshine Bitcoin’s Milestone
While Bitcoin’s climb to an 18-month high is impressive, it is DeFi tokens that are stealing the show today. Uniswap’s UNI token and Aave’s AAVE token have experienced significant growth, leading the surge in digital assets. The broader DeFi ecosystem has also seen substantial growth recently, with TVL increasing by nearly $1 billion. Additionally, gaming and metaverse tokens such as Decentraland (MANA) are performing well. The hype around the potential approval of a Bitcoin ETF has boosted crypto markets, but it is the DeFi sector that is currently shining.
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