BTC futures premiums nearly wiped out as market optimism takes a huge hit
BTC Price Bolstered by SUSHI and Renewed DeFi Surge
Overnight, the cryptocurrency market once again saw its total capitalization surge as demand for decentralized finance tokens surged. The metric increased a significant 3.2% to move above $400 billion, as per data from CoinGecko. At the same time, Bitcoin's (BTC) share of the overall market fell to 54.8%.
While everyone was rushing into various yield-farming projects, demand for Ether (ETH) surged — rising 8.85% overnight. Ether has been the main engine driving the market this week, pushing the price of Bitcoin up 2.02% to around $11,900. However, other major altcoins are evidently not favored by market participants and have significantly underperformed against ETH, with EOS and Litecoin (LTC) only up 2.21% and 1.82%, respectively.
According to DeBank, the total value locked in DeFi has now surpassed $11 billion — and SushiSwap (SUSHI) is the hottest on the menu. On Aug. 28, the Uniswap fork was launched and its total value locked exceeded more than $270 million in less than 12 hours. Right now, SushiSwap has aggregated more than $1.5 billion worth of tokens, or about 80% of total Uniswap assets, according to Sushiboard.
Sushiswap adds a token incentive to Uniswap by allocating a portion of its trading fees to holders of the SushiSwap token SUSHI, which can be sold on the secondary market. Due to the advantageous SUSHI token economy and high yield pools, SUSHI is the hottest name among DeFi tokens these days. Furthermore, the competition for which liquidity pools should be listed on SushiSwap is fierce, which rapidly increased demand for SUSHI yesterday. We are even seeing certain projects buying votes on SushiSwap in order for their projects to have a greater chance of being listed. The current leaders in this competition include YAMV2-ETH, SRM-ETH, REN-ETH, sUSD-BASED and others.
It is important to note that any minor code bug can have incalculable consequences for these decentralized platforms and become an ATM for hackers. As of yet, SushiSwap has not completed a formal audit.
Serum (SRM) was also in demand yesterday and is up 27% overnight, due to the high probability of being listed in the next round on SushiSwap. Other DeFi tokens up more than 20% overnight are Compound (COMP), Curve (CRV) and UMA. TRON will release its liquidity mining project, SUN, on Sept. 2 and is up 15%.
OKEx is pleased to announce that SushiSwap (SUSHI), YFValue (YFV), and PowerPool Concentrated Voting Power (CVP) are now listed on OKEx.
All the aforementioned tokens can be deposited into OKEx accounts immediately. The SUSHI/USDT, YFV/USDT and CVP/USDT trading pairs will be available at 10:00 am UTC today. SUSHI/ETH, YFV/ETH and CVP/ETH will be available today at 11:00 am UTC.
Top altcoin gainers and losers
- TCT/USDT +87.09%
- XUC/USDT +36.63%
- CRV/USDT +31.21%
- ORS/USDT -11.51%
- YEE/USDT -12.10%
- YFII/USDT -25.01%
Small-cap altcoins continue to take off. Exchange Union (XUC) made the top gainers list for the second day in a row and is up 36.63%. Today's big winner was TokenClub (TCT), which surged 87.09% overnight.
BTC technical analysis
BTC rose strongly this morning after making a correction to the $11,550 level, the intraday threshold mentioned yesterday. It's clear to see that BTC is being boosted by large altcoins like ETH and TRX.
BTC is currently running at the critical $11,900 level. If that level can be held, it could continue to challenge the previous highs near $12,200.
ETH technical analysis
Ether's price has been strong after stepping back on $430 support and then immediately setting a new local high of $467. Due to the quick rally, support at $445 is now farther away.
If the mania surrounding DeFi can be sustained this week, the demand for ETH will likely also remain sustained. A significant correction would be less likely.
Not an OKEx trader? Learn how to start trading!
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
OKEx Insights presents market analyses, in-depth features, original research & curated news from crypto professionals.