Bitcoin prices followed equity markets on Friday, dropping to an intraday low of $ 9,050. However, the primary cryptocurrency was able to recover to recover $ 9,300 last day, but was unable to break the resistance there and fell back to around $ 9,200 for most of Saturday.
The move has kept BTC within its divisional channel as the consolidation started in early May resumes. Trading volume and volatility are decreasing, which could indicate a more massive movement.
Bitcoin dominance at the critical point
Volatility is not the only element that is declining. Bitcoin's dominance has also dropped to a two-month low, reaching 62.5%. In early May, the dominance was almost 70%, and the timeframe coincides with the DeFi boom that started around this time.
The last time Bitcoin dominance was as low as it is today was around a year ago Coinmarketcap.
Cryptanalyst CryptoFibonacci has identified a significant confluence area for BTC dominance. An important trend line could be broken down if the dominance continues to decline.
$ BTC Daily dominance chart.
– CryptoFibonacci (@CryptoFib) July 11, 2020
A fellow analyst was not confident that dominance would return to previous highs, and added;
"I don't think we'll ever see $ BTC above 70%, maybe not even 65%. Winning far too many emerging ALTS, the competition is going to the next level."
Messari researcher Jack Purdy, pointed out that Bitcoin did absolutely nothing two months after the halving before adding that this was no different than the previous halving event in 2016.
DeFi Driving Old Season
BTC's market share has been impacted by the explosion of DeFi tokens in the past two months. Total Value Locked (TVL) in all decentralized financial markets today reached a new all-time high of $ 2.26 billion. Even more remarkable is the speed with which crypto-security has flooded into space.
In less than a month, DeFi TVL rose 114% as crypto worth over a billion dollars was pumped into the intelligent contract-based credit and credit ecosystem. In contrast, crypto markets saw only a small 1.5% increase in total market cap over the same period.
DeFi tokens are currently in the driver's seat and are starting the long-awaited old season again. Compound Finance catalyzed the momentum with the launch of the COMP token in mid-June, and since then a number of DeFi-based tokens have received their own moon shots.
In addition to COMP, massive movements were made at Balancer (BAL), Kyber Network (KNC), Aave (LEND), Synthetix (SNX), Elrond (ERD), 0x (ZRX), Ren (REN) and Bancor (BNT).
The common factor between all of them is DeFi. Therefore, it is surprising that the blockchain of most DeFi tokens, Ethereum, has not yet benefited and has been as inactive as Bitcoin in the past month or two.
Click here to start trading on BitMEX and get 10% discount on fees for 6 months.