Bitcoin has finally woken up from its two-month sleep and is also interested in the number one cryptocurrency. Trading in Bitcoin futures is on the move again. The volume and total interest rates are at their highest level since the market crash in March. With all the actions in Bitcoin (BTC), does this mean that the altcoin season is coming to an end? Maybe not.
Bitcoin appears as the correct alternative currency
During a long period of inactivity in Bitcoin, with bored traders and declining cash and derivatives trading, there were many stocks in altcoins. Decentralized financing in particular is an area that saw surprising growth in 2020. In February, DeFi reached a significant milestone by exceeding the total insurance value of over $ 1 billion in its logs.. Despite wild market conditions, especially in the first quarter, this number has almost quadrupled today. The total value set in DeFi is now over $ 3.8 billion.
DeFi tokens weren’t the only ones to see big price hikes, even though they were at the top. The popular Altcoin Dogecoin (DOGE) also saw massive gains from the infamous TikTok viral videoProjects like Filecoin and Polkadot also caused a stir (and parabolic gains). All of this happened while Bitcoin ranged from $ 9,000 to $ 10,000, which sometimes resembled a stable currency. The alternative season had started seriously … but is it about to end?
Bitcoin made its biggest move this year when it broke the $ 10,500 resistance level and briefly exceeded $ 11,400 on Monday. In fact, this was accompanied by a price correction in most major alternative currencies, including some of the powerful DeFi tokens like LINK, Maker (MKR), Compound Coin (COMP), and Aave (LEND) this week.
Temporary withdrawals, as BTC made an epic outbreak, they seemed to indicate that traders may have bet the profits made on these altcoins on Bitcoin and Ether (ETH).. Finally, let’s not forget that although Ether has been somewhat stagnant in the past few days, it has continued to grow over 40% this month.
However, on Thursday, when BTC hovered around the $ 11,000 mark and didn’t decide which way to go next, many of DeFi’s tokens made up for lost ground. Aave and Synthetix Network Token (SNX) in particular recorded 24-hour gains of 18.8% and 6.5%, respectively.
The end of the altcoins season? Not so fast
While we may be able to conclude that the altcoin season may have been interrupted while bitcoin was in the spotlight, we should remember that most altcoins follow the bitcoin pattern and increase the price soon after. BTC gains are good for alternative currencies, and DeFi excitement cannot be ignored. Just as we see that more value is blocked every day, we also see a large institutional investment in the DeFi area.
Giants like TD Ameritrade, CMT Digital and Arca Labs have invested in the development of DeFi and asked for official clarifications. We even saw that the US regulators approved an Arca Labs Ethereum-based fund earlier this month. Bitcoin’s dominance may remain high at 61.4%, but DeFi’s promise, Ethereum 2.0 expectations, and main revenue this year show further prospects for altcoins.
With U.S. banks now empowered to protect Bitcoin, the SEC nod to Ethereum, and no investor is able to ignore DeFi’s potential, the signs appear to be optimistic for the whole room. AND In contrast to the wild rally 2017, the industry is infinitely better prepared this time. Not only is the race fueled by retail or fear of missing out on potential profits, and the high-quality projects leading the prosecution have shown real and promising advances as well as real products to secure your white papers.
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