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DeFi Bubble Grows as Bitcoin Bores — Crypto Market Daily

2020.07.20 Robbie Liu

The Bitcoin (BTC) price stagnated in the $9,100 to $9,230 range over the weekend, which has been par for the course in recent weeks. The total cryptocurrency market capitalization increased by $4 billion to reach $278 billion, while Bitcoin lost another 0.4% of its dominance, according to data from CoinGecko

Analysts have been consistently predicting big inbound swings for the price of BTC, but the market volatility is still on holiday. Traders who are betting on volatility have already hit several stop-losses due to the extreme tightness of the Bollinger bands. 

The market-leading cryptocurrency realized only a mere 0.27% return over the last 24 hours. Meanwhile, EOS surged 3.63% and ether (ETH) added 1.7%. 

Algorand (ALGO) rose 9% today — due in large part to Coinbase’s listing. The altcoin has surged 80% since the beginning of the month. ALGO is currently hampered by the $0.40 resistance level. Breaching this level would likely test the previous mid-March high of $0.50. 

Last week's market darlings have been pulling back today. Cosmos (ATOM) retreated 5.9% and Otology (ONT) decreased by 4.18% over the last 24 hours. 

OKEx Token Index Board as of 8:00 am UTC. Source: OKEx

Decentralized finance tokens are on the rise again. Five DeFi tokens are up more than 10% in the last 24 hours, with Kava surging 32.45%.

Returns of DeFi tokens. Source: Messari

Moreover, yearn.finance launched a governance token, YFI, with no pre-mine and has achieved 1,000% APY. With screenshots like the one from YFI Yield Farming presented below, it is easy to understand why some critics are calling this a full-blown DeFi bubble.

Screenshot of Curve. Source: Curve

Top gainers and losers

  • FTM/USDT +17.94%
  • ARK/USDT +17.28%
  • ACT/USDT +15.75%
  • TMTG/USDT -7.33%
  • DOT/USDT -11.78%
  • MOF/USDT -18.12%

The price movement of Fantom (FTM) gained 17.94% over the last 24 hours. Meanwhile, ARK and Achain (ACT) increased by 17.28% and 15.75%, respectively. 

The volatile Molecular Future (MOF) came as the biggest loser, again — down 18.12%. 

New listings

Polkadot (DOT) is available today for Spot Margin Trading and Savings at 7:00 am UTC. 

DOT has been very volatile after being listed on OKEx last week. It soared to a high of $320 after going live for eight hours. It then fell to its current level of $170.

BTC technical analysis

While prices still haven't changed much, BTC open interest on OKEx has risen to $810 million over the weekend. However, there is not much market sentiment to be seen in the long/short ratio and BTC Basis.

Technically, support at $9,100 remains intact — indicating that short-selling power is not strong. From the one-hour chart, the intra-day rebound is likely to continue while targeting $9,300. 

 OKEx BTC Perpetual Swap 1h chart. Source: OKEx, TradingView

ETH technical analysis

Though the market cap of DeFi is rising rapidly, the price of ETH has been growing at a slower pace. 

ETH broke through the weekend’s resistance of $236 early this morning. The next resistance level is around $242.

OKEx ETH Perpetual Swap. 1h chart. Source: OKEx, TradingView


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.

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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.

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