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OKEx Insights Crypto Market Daily DeFi Ethereum Bitcoin

DeFi tokens surge ahead of EIP-1559, despite bad news from Beijing and Barclays

2021.07.06 Adam James

With ETH seeing a solid increase and most major DeFi tokens surging in price, BTC is stagnating above critical support. 

The cryptocurrency market is undergoing a recovery today after yesterday's weak start to the week. Though the price of BTC is only up a modest 1.5%, per data from CoinGecko, the price of ETH is up nearly 5% — potentially due to the impending implementation of EIP-1559, which could come later this month.

Further bolstering the price of ETH today may be the news that Swiss crypto bank Sygnum has launched a staking service for Ethereum 2.0 — an apparent first for the alternative or traditional banking industries.

Other altcoins experiencing significant gains include Uniswap's token UNI and Aave's token AAVE, which are up roughly 15% and 27%, respectively. COMP is also riding today's decentralized-finance wave after gaining nearly 22%.

Led primarily by DeFi tokens, the cryptocurrency market is experiencing a strong recovery after yesterday's sell-off. Source: Coin360

Beijing, Barclays and Bybit hamstring crypto market sentiment

Regulatory developments continue to dominate the news front and are bringing market sentiment down.

A pair of regulators in the capital city of China — the People's Bank of China's Business Administration Department and the Beijing Financial Supervision and Administration Bureau — issued a joint statement today warning against the alleged risks surrounding cryptocurrency trading. Though in line with the overarching narrative coming out of the country, the news is unlikely to have a positive impact on overall market sentiment.

Additionally, Barclays has commenced a prohibition of credit/debit card fund transfers to Binance — a competitor of OKEx. The famous United Kingdom-based bank has claimed the measures are being taken because it is the bank's "responsibility to help protect your money." Naturally, the statement has not gone over well with proponents of cryptocurrency, who largely believe that individuals have the right to be their own bank.

Furthermore, Bybit — a major crypto derivatives exchange and competitor of OKEx — plans on implementing Know Your Customer checks amid increasing regulatory pressure. The news leaves fewer places for users wishing to stay anonymous to trade cryptocurrency-related derivatives amid increasing global regulatory pressure.

In combination with the expected decrease stemming from yesterday's sell-off, today's top stories have helped drag market sentiment back down to extremely fearful levels — per multifactorial crypto market sentiment analysis from alternative.me. Nevertheless, today's recovery in prices may bring sentiment back up when the Fear & Greed Index updates.

Crypto market sentiment has declined markedly since yesterday. Source: alternative.me

DeFi token valuations surge, despite modest TVL increases

Though DeFi token prices are seeing substantial and impressive increases today, increases in total value locked have been more modest. Per data from Defi Llama, Synthetix had added the most over the past day. The derivatives liquidity protocol has added 15.15%. Meanwhile, Lido, Anchor and Uniswap V3 have added more than 5% to their respective TVLs.

The total value locked in Synthetix has increased steadily over the past two weeks. Source: Defi Llama

In DeFi-related news, today's top story is arguably that prominent YouTuber Patrick Shyu, known as TechLead, has been accused by some of running a million-dollar pump-and-dump scheme via Uniswap. On Twitter, Shyu has called such criticisms of his pre-mined Million cryptocurrency with "no maximum value" as FUD — short for fear, uncertainty and doubt.

Top altcoin gainers and losers: DeFi tokens dominate

  • ALPHA/USDT +40.81%
  • SAND/USDT +21.02%
  • SNX/USDK +16.45%
  • JFI/USDT -10.59%
  • APM/USDT -14.56%
  • VELO/USDT -24.38%

Some major cryptocurrencies have made their way to the upper portion of the top-performing-altcoins list on OKEx. Most prominently is third-place SNX, which has gained nearly 16.5%, per the exchange's default trading time settings. FLOW is in fourth place after also gaining more than 16%, while SUSHI, AVAX, 1INCH, CRV, UNI and many other DeFi-related tokens are seeing double-digit percentage gains.

The price of SNX has out-performed all but two altcoins on OKEx today. Source: OKEx

BTC technical analysis: Taking a back seat to DeFi tokens

The story hasn't changed much since yesterday for the foremost cryptocurrency. BTC is still trading in the lower portion of a wide horizontal range between sellers around 40,000 USDT and buyers around 30,000 USDT.

Overall, the market-leading cryptocurrency doesn't look terribly strong today — unlike ETH and most DeFi tokens. In the bigger picture, some are still anticipating further declines for BTC as global regulators continue to apply pressure to the industry from various fronts.

OKEx's BTC/USDT 4h chart — 7/6. Source: OKEx, TradingView

ETH technical analysis: Trying to surge against BTC

The price of ETH continues to take back much of the market share that it recently lost against BTC. Currently, the foremost altcoin is attempting to break through an area of historic interest — but it could easily reverse into a fakeout. Some short-term traders will be looking for more confirmation before entering long positions, as doing so right now would be akin to longing at resistance.

OKEx's ETH/BTC 4h chart — 7/6. Source: OKEx, TradingView

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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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