DeFi Is Killing Bitcoin Dominance Now at 60%
“So far, bitcoin dominance has largely been sliding downwards since the beginning of 2020,” said Andrew Tu, an executive at crypto quant trading firm Efficient Frontier. “It will be interesting to see if we see a short term reversion of the bitcoin dominance back upwards.”
Jean Baptiste Pavageau, partner at trading firm ExoAlpha, says decentralized finance, or DeFi, is captivating the crypto market, and that is causing weakness for bitcoin.
“The market is focused on DeFi. It seems that locking value is also draining liquidity from exchanges as traders are noticing higher slippage when executing in the market,” Pavageau said. “A question to ask might be: Is the total value locked a threat to market liquidity for active traders?”
Jean Baptiste Pavageau, partner at trading firm ExoAlpha, says decentralized finance, or DeFi, is captivating the crypto market, and that is causing weakness for bitcoin.
“The market is focused on DeFi. It seems that locking value is also draining liquidity from exchanges as traders are noticing higher slippage when executing in the market,” Pavageau said. “A question to ask might be: Is the total value locked a threat to market liquidity for active traders?”
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