After Bitcoin now the Altcoins? Tokens of the 2017-era experience parabolic rise
It is atypical that decentralised finance coins (DeFi-Coins) such as Yearn.finance’s YFI and AAVE have retreated into the background in the last 24 hours, while Ethereum, together with a number of other Altcoins, is rising higher and higher.
According to market data, the crypto currencies with the best performance by BitQT in the top 100 by market capitalisation are all 2017-era coins, which recovered strongly from the previous bull market but have since seen an extremely subdued price performance.
Ripple’s XRP has risen 35 per cent in the last 24 hours, making it the best-performing crypto asset in the top 100 by market capitalisation. Coins such as IOTA, VeChain, Huobi Token, Stellar, Dogecoin and many others have also gained over 20 per cent in the last 24 hours.
Top 20 crypto currencies by market capitalisation
It is interesting that the majority of these top performers have nothing to do with DeFi. Instead, they are coins that many would define as „dead“ – or at least tokens that die slowly.
The last few weeks have been marked by absurd DeFi rallies, with names like YFI, Synthetix Network Token (SNX) and many others literally recovering by hundreds of percent from their lows in October or November. But the last few days have shown that even „dinosaurs“ still have rally potential.
Trader „Hsaka“ comments on the ongoing crypto-market rally as follows:
„The first day in a long time that dinosaurs have outperformed DeFi blue chips. I guess there is a big catch-up process ahead“.
This rally marks the first day that these 2017 era Altcoins have surpassed Bitcoin, Ethereum and DeFi-Coins to such an extent. It is unclear whether this will continue – although many see this as a time when retail investors are buying well-known, established names.
Price adjustment to DeFi
Analysts assume that there will be a revaluation of the DeFi-Coins at some point.
Eric Conner, podcaster and developer of Ethereum, comments that „zombie chains“ with low activity in the chain (as is the case with Bitcoin-Forks, for example) have about nine times as much capital as DeFi tokens:
„Zombie chains and DeFi protocols still have to be massively re-evaluated relatively. Combined MC of XRP, BCH, LTC, DOT, BNB, ADA: 33 billion dollars Combined MC from UNI, AAVE, SNX, YFI, MKR, COMP: $4 billion…“
However, there is no guarantee that the market will operate rationally in the near future – especially as DeFi-Coins are not yet accessible to many users – both in terms of availability and intrinsic value.