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Bitcoin had its strongest month since April, when a rise in Ethereum followed an announcement about its ETH 2.0 update, but the DeFi party “ends abruptly”.
These are the key points of Binance’s October trading report – the first of which was earlier this year – which seeks to assess key insights and data on trading activity in the crypto-futures markets.
In October, Binance noted, Bitcoin gained more than 27%, breaking the $ 14,000 mark for the first time since June last year. However, for Binance’s DeFi (decentralized finance) index, the market has seen falling returns for a space that has seen a “phenomenal run” for most of this year.
As reported by various publications, the beginning of September saw the vast majority of the major DeFi tokens lose more than 50% of their value. Messari, provider of market data for DeFi assets, noticed the change. Analysts at the time saw the main reason in a simple market correction, noting that the assets had been overbought during the growth period.
Binance saw a negative correlation between DeFi and Bitcoin tokens, as well as something negative between DeFi and Ethereum. This despite Ethereum powering a large part of the DeFi ecosystem. Yet there is a bright side: the underlying fundamentals of the industry have remained stable, according to the trading report, with steady growth despite underlining the dying hype. [its] long-term potential and investor interest. “
For Ethereum, a series of updates on the upcoming Ethereum 2.0, which will allow for a far greater number of transactions, helped strengthen the signal this month. Phase 0 for ETH 2.0 has been formalized for launch, with the expected launch date – subject to the contract that collects 16384 deposits of 32 ETH each – around 1 December. Vitalik Buterin sent 100 transactions for 32 ether every last week.
ETH is currently priced just under $ 440 at the time of writing, up from $ 420 due to the decline in the Binance report. The company added that shifting Ethereum’s consensus mechanism to proof of the stakes, reducing token supply while maintaining demand, will also help.
“The upgrade could drag ETH away from its recent slump and potentially inject more positive sentiment into the altcoin industry,” Binance noted.
You can read the full report here.
Photo by MBM on Unsplash
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