Tape protocol (BAND), the rival blockchain network of Chain link (LINK)which is also at an all time high increased its price by 65%. In 24 hours BAND rose from $ 4,825 to $ 8, setting a new record.
Three main catalysts appear to have started the BAND bull run. namely, the rise of DeFi (decentralized funding), its listing on Coinbase and its new partnerships.
BAND daily chart. Source: TradingView.com
The rise of DeFi
From June 1st The total value set in the DeFi protocols increased from $ 1.04 billion to $ 4.47 billion. DeFi-related project token valuations have increased significantly as the capital in its ecosystem has more than quadrupled.
Tape log, Like Chainlink, it is a blockchain network of oracles. The DeFi protocols rely on these oracles to get market data as they cannot access raw data from other blockchains or websites. Such as, Oracles are critical to the success of DeFi applications.
As the DeFi market grows rapidly, the demand for these oracles keeps pace with the increase. DeFi projects could technically create their own oracles, but it takes time and resources to develop them. This is where oracles like Band Protocol and Chainlink come into play.
Chainlink was also an exceptional performer last month. Since July 6th, the price for LINK has increased from USD 4.74 to USD 9.6, more than 100%.
BAND’s listing on Coinbase
On August 5th Zach Segal, Coinbase’s listing head said that Coinbase Pro will include the Band Protocol. The official Coinbase Pro account announced that BAND will be listed before August 10, provided that liquidity conditions are met. The Coinbase Pro Team said::
“On Monday, August 10th, our order books for BAND-USD, BAND-BTC, BAND-EUR and BAND-GBP will go into transfer-only mode and accept incoming transfers from BAND in supported regions. Orders cannot be placed or completed. Trading starts at 9:00 a.m. PT the next day if the liquidity conditions are met. “
In just an hour The price of BAND rose from $ 5.6 to $ 8 after the listing on Coinbase Pro was announced. Many cryptocurrencies have experienced Strong rallies ahead of the listing on Coinbase. But after that, as in the case of Compound (COMP) tend to see pullbacks as traders take their profits.
Direct link with DeFi platforms
On August 4th Band Protocol and Elrond announced their partnership to use Band’s Oracle as an off-chain data source. At the time, Elrond CEO Beniamin Mincu said:
“The availability of cross-chain data will accelerate the DeFi applications built at Elrond, while data outside the chain will open the door to a wide variety of powerful business applications.”
According to the CoinMarketCap data Elrond has a market cap of $ 278 million and is the cryptocurrency that ranks 43rd by market capitalization. Supported by Binance Labs, is a PoS network (Blockchain Proof-of-Stake) that was developed for large decentralized applications (DApps).
Following the latest trend from BAND, The early investors were optimistic about the project. Kelvin Koh, Co-founder of Asia-based venture capital firm Spartan Black, said::
“Congratulations to the BAND team. Well deserved recognition for a team that works very hard and has shown that it can be thick and thin. I hope that this will result in more partnerships and listings on the stock exchanges. “
Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, It was found that tokens launched from the Binance launch pad generally performed well. He said::
“We have seen some amazing runs on Binance IEOs. The most powerful engines are; KAVA, ERD and BAND have all moved over 10 times. Recently, $ PERL joined this party with a major breakup. I think CELR, ONE and BRD can still merge. “
It remains uncertain whether BAND’s strong momentum could offset the risk of a sell-off after Coinbase, which many cryptocurrencies have already seen in recent months. Right now, Oracle and DeFi-related blockchain projects seem to be seeing a surge in demand.