This Is Bitcoin (BTC)’s Savior
As you know by now, back in March, Bitcoin dropped in price significantly, and the king coin traded below $4,000.
But BTC managed to bounce back really quickly, and this led to an increase in trust and popularity for the coin.
There’s been a massive increase in the interest in Bitcoin even in 2020 when we’re in the middle of a global crisis that’s been triggered by the pandemic.
At the moment of writing this article, Bitcoin is trading in the red, and the coin is priced at $9,190.48.
As we already reported following the May halving, there have been a lot of optimistic predictions about the price of BTC.
But, for a couple of months now, the king coin is still trading a bit above $9,000 – it’s been consolidating at this price.
This is Bitcoin’s savior
Forbes just noted that Bitcoin price could be much lower without one large phenomenon that has been occurring over the past 3 months: Defi explosion.
DeFi aka Decentralized Finance comes in a lot of forms, including lending, derivatives, exchanges, and payments, as the online publication mentioned above notes.
“The nascency and excitement around the space makes new protocol tokens susceptible to boom and bust cycles,” Forbes writes.
They continue and reveal that “The most recent boom cycle is around liquidity mining. Liquidity mining is an incentive program set up by new DeFi protocols to attract users, i.e. liquidity. These programs typically distribute, so-called governance tokens to these liquidity providers, commonly known as yield farmers.”
We recommend that you check out the complete article in order to learn more details.
At the beginning of this disastrous year, we were reporting that in a report, Binance Research tracked the way that DeFi gains steam among the crypto savvy.
Binance highlights early success stories about building decentralized systems for people in roder to boost the crypto to more users.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.