DFI’s price has bounced off its swing low in the last two weeks, and a number of data points suggest that the project’s fundamentals will continue to improve.
DeFi, or decentralized finance (DeFi), is one of the most common and widely applicable use-cases for blockchain technology today, and it is one of the primary methods for wider adoption.
Last week, as the broader cryptocurrency market corrected and Bitcoin (BTC) fell by 22%, DeFiChain (DFI) defied the trend and rose 76 percent to a new high of $5.70 on December 6, when its 24-hour trading volume increased from an average of $3.6 million to $24.3 million.
DFI/USDT 4-hour chart. Source: TradingView
The price increase for DFIN follows three reasons, including the mainnet’s debut of decentralized assets, a rise in transactions and users on the network, and an expansion in overall value trapped on the protocol.
Traders are rushing to invest in cryptocurrency and blockchain-based companies
The most significant source of momentum for DFI in recent weeks has been the introduction of decentralized assets on the DeFiChain network, as well as staking possibilities for holders.
Users of the platform now have access to a variety of pools that include large-cap digital currencies like Bitcoin and Ether, as well as synthetic versions of popular equities and indices such as Tesla (TSLA), Apple (APPL) and the S&P 500 (SPY). Stakers also benefit from the platform’s greater-than-average.
Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK), and iShares 20+ Year Treasury Bond ETF (TLT) are some other d-asset choices accessible to customers.
Flows increase dramatically
Another explanation for DFI’s strong results may be due to the network’s growing popularity, as a result of the introduction of decentralized assets.
Daily DeFiChain transaction count. Source: DeFiChain Analytics
The rise in network activity is primarily the result of the new use cases made possible by the introduction of decentralized assets, such as asset creation, liquidity mining, and arbitrage trading. The number of distinct wallets holding DFI has surpassed 42,555 for the first time ever on Dec. 8 thanks to additional features.
Unique addresses holding DFI. Source: DeFiChain Analytics
The total value locked reaches a new all-time high.
According to Defi Llama data, DEFT has also seen a consistent growth in overall value secured on the DeFiChain platform, which is now at an all-time high of $1.83 billion.
The value surge coincided with the network’s introduction of decentralized assets, which is no surprise since users rushed to deposit money in order to participate in the high-yield possibilities available to liquidity providers.
Aside from the staking features available on the DeFiChain DEX, larger DFI holders can also lock their DFI tokens up to operate a masternode on the network and earn rewards in return for validating transactions and safeguarding the blockchain.
The price of the DeFiChain (DFI) has been climbing steadily recently. Traders are flocking to decentralized equities and cryptocurrencies, transaction volume is increasing, and total value reaches a new all-time high. This article will go deeper into these three factors by looking at what they imply for investors who are interested.
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