DeFi Boosts Market As Bitcoin Taps on $35K – eToro Crypto Roundup
Compound jumps 40% while Aave and Uniswap enjoy 20% gains.
As Ethereum has pushed almost 10% higher this week, Bitcoin has drifted sideways on mixed headlines.
The Chinese clampdown on mining continues to drive uncertainty in the market, along with the ramp up of regulatory discussion in the US. Yet this is matched by equal amounts of positive news, with Michael Saylor’s Bitcoin Mining Council finding the cryptoasset to be more sustainable than often thought, and institutional giants Soros Fund Management and Point72 entering the fray.
Despite the uncertainty capping gains for top cryptoassets, tokens in the DeFi sector are moving up a gear. Compound has made a convincing resurgence with 40% gains, and Aave and Uniswap are outpacing Ethereum with double-digit wins.
This week’s highlights
- DeFi swings higher on institutional hopes
- Bitcoin goes green on sustainable mining statistics
DeFi swings higher on institutional hopes
The biggest winner of the week is the DeFi sector, with new projects aimed at institutions catalyzing higher prices for leading tokens.
Comp, the governance token of Compound, added 40% after the launch of Compound Treasury. This new product aims to act as a savings account, allowing big investors to deploy stablecoins for guaranteed returns of 4%.
With lower gains of 20%, competing lending protocol Aave also surged after news emerged that it will be delivering DeFi yields to institutions with Aave Pro.
Bitcoin goes green on sustainable mining statistics
Ever since Elon Musk tweeted that Tesla won’t be accepting transactions until Bitcoin uses 50% clean energy, environmental concerns have cast a shadow over the crypto market.
Last week, however, Bitcoin’s true environmental credentials were brought to light as the Bitcoin Mining Council announced that in the second quarter of 2021, mining relied on an electricity mix that was 56% sustainable.
Whether Musk will accept these new mining statistics could be revealed on July 21, 2021, when the self-proclaimed Technoking is set to discuss Bitcoin with Twitter founder Jack Dorsey.
Week ahead
As Americans step away from their desks to celebrate the Independence Day holiday, we may see quiet markets early in the week.
However, some traders are expecting fireworks from the selling of GBTC shares. This event could catalyze volatility as Grayscale Bitcoin Trust investors cash out, but analysts are divided over whether the impact will be bullish or bearish.
Elsewhere, we could see volatility spill over from the stock market on Wednesday afternoon as the Fed releases minutes from its last meeting. These could contain key details about future monetary policy.
This post originally appeared on the eToro blog.
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