3 reasons why DeFiChain (DFI) price has gained 60% in December
The price of DFI has risen off its swing low in the previous two weeks, and a lot of data indications imply that the project’s fundamentals will continue to strengthen.
Decentralized finance (Defi) is one of the most broadly applicable use-cases for distributed ledger technology, and it is now one of the key paths for blockchain adoption.
DeFiChain (DFI) defied the trend last week, rallying 76 percent to a new high of $5.70 on Dec. 6, as its 24-hour trading volume increased from $3.6 million to $24.3 million, as the larger crypto market corrected and Bitcoin (BTC) fell by 22 percent.
The debut of decentralized assets on the DFI mainnet, growth in transactions and users on the network, and an increase in the total value locked on the protocol are three causes for the price breakout.
Traders are flocking to cryptocurrency and decentralized stocks.
The debut of decentralized assets on the DeFiChain network, as well as staking opportunities for holders, has been the most significant source of impetus for DFI in recent weeks.
Users of the site now have access to a variety of pools, including large-cap cryptocurrencies such as Bitcoin and Ether, as well as synthetic copies of major equities and indexes, such as Tesla (TSLA), Apple (APPL), and the S&P 500. (SPY). Stakeholders benefit from the platform’s higher-than-average returns in addition to having exposure to these assets.
Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK), and the iShares 20+ Year Treasury Bond ETF are some of the other d-asset possibilities accessible to investors (TLT).
The number of transactions has increased dramatically
An increase in transactions on the network following the introduction of decentralized assets is another reason for DFI’s high success.
The advent of decentralized assets has enabled new use cases like asset generation, liquidity mining, and arbitrage trading, which have resulted in a rise in network activity.
The additional features have also aided in attracting new users to the DFiChain ecosystem, with the number of unique wallets holding DFI hitting a new high of 42,555 on December 8.
Total value locked hits a new all-time high
The increase in value locked corresponds to the network’s debut of decentralized assets, and it’s clear that users raced to deposit funds in order to take advantage of the high yield prospects provided to liquidity providers.
Aside from the staking options available on the DeFiChain DEX, bigger DFI holders with at least 20,000 DFI can lock their DFI tokens and run a masternode on the network, earning rewards in exchange for assisting with transaction verification and blockchain security.