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The crypto market is going through a turbulent time. Bitcoin has lost nearly 30% of its value from the beginning of this month. It is now trading well below $7,000. Ethereum is not doing very well either – ETH price has fallen nearly 11% in 24-hours and is trading at $135. XRP has plunged nearly 10%, and is now trading at $0.209. Other top cryptocurrencies are also in red. However, DeFi applications seem to be making the best out of the turmoil in the crypto market. The total value locked (TVL) in ETH in DeFi apps is at an all-time high. 

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TVL (ETH) in DeFi At An All-Time High

On 25th November, the total value locked (ETH) in DeFi applications hit 4.422 million, thereby establishing a new all-time high. This uptrend, which began in mid-2019, has been mostly steady with some minor kinks every now and then. This shows that that investment in DeFi is on the rise and it is not correlated to the rest of the crypto market which has seen significant ups and downs in the last six months.

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Source: DeFi Pulse

Maker, Synthetix and Compound continue to be the top 3 DeFi apps. Maker and Compound are lending apps which enable users to borrow money by using ETH and other cryptocurrencies as collateral. Synthetix is a derivatives protocol that allows users to invest in real-world assets like commodities, fiat currencies and crypto assets. At press time, Maker’s TVL (ETH) is up 1.7%, Synthetix’s is up 15% and Compound’s is up 3.8%. The TVL (ETH) of all other DeFi apps, except for InstaDApp and Augur, is also in green. Maker’s dominance, however, has fallen below the 50% mark. Synthetix’s dominance has been increasing rapidly. From $491.788 K ETH on November 1, the TVL (ETH) locked in ETH now stands at over 1 MM.

TVL (USD), however, in DeFi apps is down from its all-time high. At press time, it is at $595 MM, down nearly 12% from its all-time high of $675 MM on November 21. The loss in TVL (USD) can be attributed to the loss in ETH value. Though the amount of ETH locked in DeFi has increased, the price of ETH has plunged severely over the last few days, which translates into a loss in TVL (USD).

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Falling ETH Value the Reason Behind the Growth in TVL (ETH)?

The reason for the growth in TVL (ETH) could be attributed to the falling value of ETH. Investors, not wanting to sell ETH at depressed prices, are likely to be putting it to other uses, such as using it as collateral for availing a loan or using it to invest in relatively safe crypto derivative projects like Synthetix. Also, several lending protocols also enable users to lend their ETH and earn an interest on it. Thus, the growth of DeFi is owing to the crypto community gradually realising that DeFi apps are a viable use case of Ethereum.

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DeFi Update: DeFi Soars to New Heights As the Rest of the Crypto Bleeds

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DeFi Update: DeFi Soars to New Heights As the Rest of the Crypto Bleeds

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The crypto market is going through a turbulent time. Bitcoin has lost nearly 30% of its value from the beginning of this month. It is now trading well below $7,000. Ethereum is not doing very well either – it has fallen nearly 11% in 24-hours and is trading at $135. XRP has plunged nearly 10%, and is now trading at $0.209. Other top cryptocurrencies are also in red. However, DeFi applications seem to be making the best out of the turmoil in the crypto market. The total value locked (TVL) in ETH in DeFi apps is at an all-time high. 

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Vinnie Singh

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CoinGape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Vinnie Singh , 2019-11-25 11:20:32 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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