3 reasons why DeFiChain (DFI) price has gained 60% in December

In the last two weeks, DFI price bounced off its swing low and a number of data points suggest the project’s fundamentals will continue to improve.

Decentralized finance (DeFi) offers one of the most widely applicable use-cases for distributed ledger technology and today it is one of the main avenues for the wider adoption of blockchain technology.

Last week, as the wider crypto market corrected and Bitcoin (BTC) dropped by 22%, DeFiChain (DFI) bucked the trend and rallied 76% to establish a new high at $5.70 on Dec. 6 as its 24-hour trading volume surged from an average of $3.6 million to $24.3 million.

DFI/USDT 4-hour chart. Source: TradingView

Three reasons for the price breakout for DFI include the launch of decentralized assets on the DFI mainnet, a surge in transactions and users on the network and an increase in the total value locked on the protocol.

Traders pile into decentralized stocks and cryptocurrencies

The biggest source of momentum for DFI in recent weeks has been the launch of decentralized assets on the DeFiChain network and staking options for holders.

Users of the platform now have access to multiple pools that include large-cap cryptocurrencies like Bitcoin and Ether, as well as synthetic versions of popular stocks and indices, including pairs for Tesla (TSLA), Apple (APPL) and the S&P 500 (SPY). In addition to having exposure to these assets, stakers also benefit from the higher-than-average yields available on the platform.

DeFiChain DEX pool pairs. Source: DeFi Scan

Other d-asset options available to users include Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK) and the iShares 20+ Year Treasury Bond ETF (TLT).

Transaction volumes surge

Another reason for the strong performance seen from DFI has been an increase in transactions on the network following the release of decentralized assets.

Daily DeFiChain transaction count. Source: DeFiChain Analytics

The surge in network activity is largely the result of the new use cases made possible by the launch of decentralized assets, including the creation of assets, liquidity mining and arbitrage trading.

The added features have also helped to attract new users to the DFiChain ecosystem, with the number of unique wallets holding DFI reaching a new record high of 42,555 on Dec. 8.

Unique addresses holding DFI. Source: DeFiChain Analytics

Related: Nasdaq to provide price feeds for tokenized stock trades on DeFiChain

Total value locked hits a new all-time high

DFI has also seen a steady increase in total value locked on the DeFiChain protocol, which is now at an all-time high of $1.83 billion according to data from Defi Llama.

Total value locked on DeFiChain. Source: Defi Llama

The spike in value locked coincides with the launch of decentralized assets on the network and it’s claer that users rushed to deposit funds to gain access to the high yield opportunities available to liquidity providers.

Aside from the staking features offered on the DeFiChain DEX, larger DFI holders with at least 20,000 DFI also have the option of locking their DFI tokens up in order to run a masternode on the network and earn rewards in return for helping to verify transactions and secure the blockchain.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

NFT partnerships and protocol integrations boost Tezos, WAX and Aleph.im

A slew of new NFT-related partnerships and integrations with DeFi platforms sparked a rally in XTZ, WAXP and ALEPH.

The roller coaster ride that is the cryptocurrency market continued its volatile ways on Dec. 8 as Bitcoin (BTC) price briefly slipped below the $49,000 level. Despite the setback, there are still clear signs that crypto mass adoption is taking place, a prime example being Visa’s announcement that it will launch crypto consulting and advisory services for merchants and banks. 

Analysts expect that Bitcoin will continue to search for firmer footing and while this process plays out, Ether and a handful of mid and low-cap altcoins are booking moderate gains.

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24 hours were Tezos (XTZ), WAX (WAXP) and Aleph.im (ALEPH).

Ubisoft launches NFTs on Tezos

Tezos is a layer-one blockchain protocol that includes a built-in mechanism that allows the network to evolve and upgrade over time without the need for hard forks.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for XTZ on Dec. 5, prior to the recent price rise.

The VORTECSâ„¢ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECSâ„¢ Score (green) vs. XTZ price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for XTZ began to pick up on Dec. 4 and climbed to a high of 87 on Dec. 5, around 21 hours before the price increased 60.5% over the next two days.

The surge in XTZ price took place after Ubisoft, one of the top three video game companies, announced that it would be releasing its first line of in-game playable NFTs on the Tezos network, beginning with Ghost Recon: Breakpoint.

WAX welcomes Amazon and Mattel to its ecosystem

WAX is a purpose-built NFT blockchain designed to provide brands with all the tools necessary to launch a NFT collection and make e-commerce transactions faste and more secure for all parties involved.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for WAXP on Dec. 4, prior to the recent price rise.

VORTECSâ„¢ Score (green) vs. WAXP price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for WAX spiked into the green zone on Dec. 4 and reached a high of 81 around 40 hours before the price increased 84.8% over the next two days.

The spike in momentum for WAXP comes as it was announced that Amazon had entered the WAX ecosystem after making an investment in the collectible marketplace Dibbs while it was also announced that three leading toy companies, Funko, Mattel and Hasbro, have partnered with WAX for “Sellout Collections.”

Related: Bitcoin rebounds on Wall Street open as exchange BTC reserves plunge after $42K dip

Aleph provides analytics support for Serum

Aleph.im is a cross-chain protocol focused on the creation of a decentralized database including file storage, computing and a decentralized identity (DID) framework.

VORTECSâ„¢ data from Cointelegraph Markets Pro began to detect a bullish outlook for ALEPH on Dec. 5, prior to the recent price rise.

VORTECSâ„¢ Score (green) vs. ALEPH price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECSâ„¢ Score for ALEPH hit a high score of 80 on Dec. 5, around 31 hours before the price increased 38% over the next two days.

The climbing price of ALEPH comes after the protocol announced that it is now providing its indexing solution to the Solana-based decentralized exchange Serum, a move which should help to increase the ability to obtain DeFi analytics on the Solana network.

The overall cryptocurrency market cap now stands at $2.373 trillion and Bitcoin’s dominance rate is 40.1%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.