HomeTradingDeFi: the record rise of the industry continues

DeFi: the record rise of the industry continues

The parabolic ascent of DeFi continues, but for the rest of the crypto market, the prevalence of red signs increases to 80% today. 

coin360 20200826
Source: COIN360.com

Scrolling the list of the Top 20, a faded green sign emerges, that of Cosmos (ATOM) which is alone above parity with +0.5%. Going down beyond the 22nd place, there is the rise of Aave (LEND), which today too marks a double-digit increase above 10%. 

LEND 20200826

In the last hours, LEND has touched the $0.9% updating the historical maximum.

Among the best of the day, beyond Aave (LEND), there is Aragon (ANT) +15% and Kusama (KSM) +25%. The latter is a primitive project of Polkadot (decentralized protocol of interoperability between different blockchains). 

On the opposite side, one of the worst is Flexacoin (FXC), down more than 13%, followed by Nervos Network (CKB) and Verge (XVG), both -10%.

The declines of the last few hours bring prices back to test relative lows of early August, increasing trading volumes mostly resulting from the closure of short-term positions. Total trade on spot platforms is over $165 billion, with Bitcoin just under $3 billion and Ethereum at $1.5 billion, both the highest level in the last week.

Total capitalization drops to $355 billion, the lowest level since mid-August. 

Bitcoin dominance in slight recovery to 59.2%. Ripple unchanged at 3.5% while Ethereum is contracting and slipping to 12%, level of the beginning of the month.

DeFiPulse 20200826

DeFi on the rise

Today the wall of the $7 billion locked on the various platforms has been knocked down.

After the conquest of the first position for countervalue locked in collateral, Aave (LEND) strengthens the podium by climbing over $1.55 billion. New absolute record also for the total amount of Ether used in the various dApps. Over 4.8 million units. A 98% increase from early July levels.

BTC 20200826
Bitcoin chart by Tradingview

Bitcoin (BTC)

The prices of Bitcoin are again testing the $11,200 support. This is the third time in two weeks. Previously, both times, the support has rejected the downturn by bringing the prices back up to the period highs. 

It will be necessary to keep this level in order not to risk going to test the next level in the 10,500 area where in the last 48 hours the defences of professionals in options have increased. 

In the last week, the relative strength has increased in favour of the Call options, showing more fear of further declines. This is a factor that raises prudence and encourages the expectation of further confirmation of the consolidation of a valid support in the medium term.

ETH 20200826
Ethereum chart by Tradingview

Ethereum (ETH)

Despite the ferment in DeFi, the price of Ethereum continues to indicate particular weakness

After the highs reached on August 17th, a slow decline started, due more to lack of new purchases than short sales. At the moment there are no concerns about fluctuations below the psychological threshold of $400

The technical support to monitor remains the 355 dollars, first level protected also by the Put positions of the operators. A break of this level would open spaces for descents down to $310-305. Only a descent below these levels would begin to ruin the solid uptrend built from the lows of mid-March.


Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".