Cryptocurrency markets have had another lethargic weekend with very little activity for the major assets. Decentralized finance, on the other hand, continues to show solid growth, hitting a new high in terms of collateralization.
Total market capitalization for the cryptocurrency industry has remained at around $260 billion for the weekend. A slight dip by $2 billion was quickly recovered to resume the continuum, which has largely been sideways for the past two months.
Volumes have dwindled for the major assets as Bitcoin bounces around the $9,100 level showing very few signs of breaking out. BTC is now trading below the 50 day moving average which is currently above short term resistance. A spike down to $8,900 was quickly recovered for the king of crypto indicating that there is a lot of buying pressure at this price zone.
Analyst Josh Rager commented on the lack of volatility, adding that a break below that dip would lead to further losses.
“Price tagged the previous Support turned Resistance level at $9195 and has dropped back down into the compression,”
It is largely a waiting game now for Bitcoin traders as the market lethargy and consolidation continues.
As usual, the rest of the cryptocurrency market is being dictated by the movements of big brother. Ethereum, which has had a great month in terms of on-chain metrics, is still bearish and unable to make an uncorrelated move higher.
Despite massive gains for DeFi markets, which are predominantly based on Ethereum, the world’s second-largest crypto asset has fallen back to the $225 level where it currently sits.
Cardano has been making good progress over the past few days, creeping up the crypto charts in terms of market cap. ADA has made a few percent on the day, reaching $0.10 which is its highest price for almost two years.
DeFi Hits Another High
Decentralized finance markets have tapped another all-time high in terms of total value locked across various protocols. This is a measure of how much crypto collateral has been deposited into smart contracts, and it is currently being recorded at $1.86 billion according to Defipulse.com.
This peak represents a growth of around 85% over the past 30 days. In comparison, cryptocurrency markets have actually declined by around 4.8% over the same period. If the count included the Uniswap V2 platform and Curve, then it would already have exceeded $2 billion.
Leading platforms have begun distributing tokens in what has been termed ‘liquidity farming’ whereby investors are rewarded by providing liquidity to these lending and borrowing platforms.
DeFi tokens are leading gains on crypto markets at the moment, out-performing their traditional brethren. Top performing ones included 0x (ZRX), Kyber Network (KNC), Compound Finance (COMP), Augur (REP), and Synthetix Network (SNX).