The rise of Bitcoin (BTC) continues to divert capital from alternative currency markets as other cryptocurrencies try to catch up with Bitcoin.
DeFi fought the brilliance of bitcoin
The DeFi Composite Index, first launched by Binance Futures in late August, is under another month of pressure as it sank from constant highs of around $ 1,200 to below $ 400, down nearly 60%.
In fact, most DeFi tokens have wiped out 70% to 90% of winnings since early September, according to a November 5 Binance report. In early October, Cointelegraph reported a sharp drop in the index to $ 507. It was an all-time high of $ 1,189 on the first trading day in late August.
As you can see from the report, only eight DeFi tokens, AAVE and UNI, showed a neutral bond with Bitcoin in the 45 days prior to November 1st. The other eight DeFi tokens had a completely negative relationship. Besides:
“7 out of 13 DeFi tokens had a negative relationship with Ethereum (ETH), although Ethereum occupies a large part of the DeFi ecosystem. DeFi’s negative relationship with BTC and ETH comes as no surprise when the DeFi bubble ended in September. ”
The Decentralized Exchange, or DEX, UniSwap was worth $ 1.8 billion this week and accounted for the bulk of DEX trading, with all DEXs having a monthly turnover of $ 2.8 billion.
BTC’s market value and volume dominance have also increased.
Meanwhile, the dominance of the bitcoin market value has risen sharply in recent weeks with prices rising as it has risen nearly 10% since early September.
Binance notes that there has also been a significant increase in the dominance of bitcoin trading volume, claiming that it was “suppressed in previous months” due to media concerns about “alternate seasons.”
However, in October, “market sentiment reversed” in favor of Bitcoin as traders switched to BTC as the altcoin sector declined.
Bitcoin Volume Dominance, Oct 2020 Source: Binance Futures, cit. On the Binance Blog
However, Binance is of the opinion that the fundamentals of the DeFi market are solid. Despite these grim amendments, the total value of the DeFi sector has been over $ 11 billion over the past 30 days.