DeFi tokens and NFTs rally higher as Bitcoin price drops below $19,000

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Bitcoin (BTC) and other major altcoins are either stuck in a range or are witnessing a correction. However, that is not the case with the entire crypto space because a few tokens have been outperforming major cryptocurrencies by a considerable margin.

In a world where yields have plunged to negligible levels, the DeFi ecosystem has attracted investors’ attention. Data from Dune Analytics shows that the number of unique Ethereum addresses participating in various DeFi protocols has surged from about 91,000 to over 1 million in a year.

A few analysts have warned that while these numbers look encouraging, the actual number of unique users may be much smaller, as many DeFi users could be using multiple addresses. Despite this possibility, there is no denying the fact that the growth in DeFi has been phenomenal.

Compound, the fourth-largest DeFi platform by total dollar value locked, has made a strong comeback since Nov. 26 when $89 million worth of collateral was liquidated when the price of Dai surged to $1.3 on Coinbase and Uniswap. These price feeds are used by Compound.

Although Compound’s protocol worked the way it should, its reliance on just a few data points for oracles came under criticism. As this was a one-off event, the price has surged back on hopes that a solution to avoid such liquidations in the future has been reached.

DeFi tokens and NFTs rally higher as Bitcoin price drops below $19,000
Crypto market data daily view. Source: Coin360

Another token that has made a strong dash to the upside is Waves. The team behind the Waves protocol recently announced a partnership with OKExChain, a public blockchain developed by digital-asset exchange OKEx, to build decentralized applications and developer-friendly tools.

Waves’ Gravity protocol will enable OKExChain to connect and transfer assets across multiple blockchains. Assets in the Waves ecosystem can be used on decentralized exchanges built using OKExChain. Developers and traders from both ecosystems can hold, exchange and use tokens issued on both the Waves protocol and OKExChain.

The gaming industry and crypto tokens related to it have also zoomed higher in 2020 as people have been forced to stay at home due to the coronavirus pandemic. Growth within this sector also catalyzed a strong move among the nonfungible tokens, or NFTs, used in many blockchain-based games.

One of the most popular blockchain-based and NFT games of 2020 is Axie Infinity. In the game, players are tasked with building a digital landscape and battling their pets against other players, similar to Pokemon and Tamagotchi. The increasing downloads and over 4,500 active participants have also increased the demand for its Axie Infinity Shards (AXS) token.

While the fundamentals of each company have been positive, do the technicals project further upside?

Let’s analyze the charts of these three tokens to find out.