the decentralized financing (DeFi) provide one of the most widespread use cases for distributed ledger technology and are one of the primary avenues for the wider adoption of blockchain technology today.
Last week when the entire cryptocurrency market corrected and Bitcoin (BTC) fell 22%, DeFiChain (DFI) deviated from trend, rising 76% to hit a new high of $ 5.70 on December 6th. while the 24-hour trading volume increased from an average of USD 3.6 million to 24.3 million.
The three reasons for the DFI price break are the introduction of decentralized assets on the main DFI network, an increase in transactions and users on the network, and an increase in the total value locked in the log.
Traders are turning to decentralized securities and cryptocurrencies
The biggest driver for DFI in the past few weeks has been the introduction of decentralized assets in the DeFiChain network and staking options for holders.
Platform users now have access to multiple pools, including large capitalization cryptocurrencies like Bitcoin and Ether, as well as synthetic versions of popular stocks and indices, including pairs for Tesla (TSLA), Apple (APPL) and the SP 500 (SPY). In addition to the exposure to these assets, the stakers also benefit from the above-average returns available on the platform.
Other asset options available to users are Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK) and the iShares 20+ Year Treasury Bond (TLT) ETF.
Increase in transaction volume
Another reason for DeFiChain’s good performance was the increase in transactions on the network after the introduction of decentralized assets.
The increase in network activity is largely the result of new use cases that have enabled the adoption of decentralized assets, including asset creation, liquidity mining, and arbitrage trading.
The additional features have also helped attract new users to the DFiChain ecosystem, with the number of unique wallets owned by DFI hitting a new high of 42,555 on December 8th.
The total locked value reaches a new all-time high
DFI has also seen a steady increase in the total value of the DeFiChain Protocol, which, according to Defi Llama, is now at an all-time high of $ 1.83 billion.
The increase in the blocked value coincides with the introduction of decentralized assets in the network and Obviously, users were quick to invest in order to gain access to the high yielding opportunities that were available to liquidity providers.
Aside from the staking features offered in DeFiChains DEX, Larger DFI holders with at least 20,000 DFIs also have the option of blocking their DFI tokens in order to operate a masternode in the network and earn rewards in exchange for helping verify transactions and keep the blockchain secure.
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