November starts with DeFi decreasing and Bitcoin on the rise
Winter season is about to start in the North, but apparently not for Bitcoin (BTC), which is just melting after a long hibernation. Last month, we saw how the price of this currency surpassed the 13k barrier, and now is breaking as well the next level with 14,028 USD per unit; according to CoinMarketCap.
On the other hand, DeFi fever seems to be cooling down a bit. If we check the service DeFi Pulse, we’ll find that the total value locked on these projects (mostly in yield farming) has decreased since its 24th October All-Time-High (ATH) by -11.62%. But that’s not all. As indicated by the firm Dune Analytics, the last week’s volume of decentralized exchanges (DEXs) decreased by 62%, at the least.
The decline is probably due to the last Harvest Finance hack, which siphoned 24M dollars in cryptocurrencies from its vaults. DeFi apps are risky per se, however, until now, most of the investors chose to look better at the juicy profits. The recent hack, if only a stumble and an example of what could happen, may have deterred some of these investors.
Meanwhile, Bitcoin doesn’t stop: its price earned +32% during the last month. The main reason for the climbing could be the recent PayPal adoption, which provides more institutional support for the cryptocurrency. And Bitcoin isn’t alone in this, because some altcoins are rising too.
Ethereum (ETH) increased by 11.2% last month; Monero (XMR) did it with 18.3%; Litecoin (LTC) climbed by 17.7%; Chainlink (LINK) made it with +11.7% and Bitcoin Cash (BCH) rose 10%. Perhaps the yield farmers are migrating back to the origins?
The Halloween effect
In case you didn’t check before, we already told you about the bullish Halloween effect on the markets. It’s widely believed among the investors that after every Halloween (October 31) the stocks (and the cryptocurrencies) perform their best until May next year.
Now, seeing the current behavior of Bitcoin and companions, we can say such a mythical effect has some reality on it. Indeed, according to some expert’s predictions, Bitcoin is able to reach between 25k and 1M dollars in 2021 or before 2030.
Even with COVID-19 still weighing on the world and the economy, the cryptocurrencies can conserve resistance and provide some refuge. Nevertheless, the yield farming platforms probably don’t fit into this category, because they’re extremely risky. That’d explain its recent decrease, against Bitcoin and altcoins increase.
Featured Image by Pexels / Pixabay
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Originally published at https://blog.alfa.cash on November 3, 2020.