Three reasons why the price of DeFiChain (DFI) increased by 60% in December
The price of DFI has risen off its swing low in the previous two weeks, and several data indications imply that the project’s fundamentals will continue to gain strength.
Decentralized finance (DeFi) is one of the most broadly applicable use-cases for distributed ledger technology, and it is now one of the key paths for blockchain adoption.
DeFiChain (DFI) bucked the trend last week, rallying 76% to a new high of $5.70 on December 6, as its a day trading volume increased from $3.6 million to $24.3 million, as the larger crypto market corrected and Bitcoin (BTC) fell by 22 percent.
The launch of decentralized assets on the DFI mainnet, an increase in transactions and users on the network, and an increase in the total value locked on the protocol are three reasons for the price breakout.
Traders are flocking to cryptocurrency and decentralized stocks.
The debut of decentralized assets on the DeFiChain network, and also staking of opportunities for holders, have been the most significant source of impetus for DFI in recent weeks.
Users of the site now have access to a variety of pools, including large-cap cryptocurrencies such as Ether and Bitcoin, as well as synthetic copies of major equities and indices, such as Tesla (TSLA), Apple (APPL), and the S&P 500. (SPY). Stakeholders benefit from the platform’s higher-than-average yields in addition to having exposure to these assets.
Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK), and the iShares 20+ Year Treasury Bond ETF are some of the other d-asset possibilities available to investors (TLT).
The number of transactions has increased dramatically.
An increase in transactions on the network following the introduction of decentralized assets is also a reason for DFI’s high success.
The advent of decentralized assets has enabled new use cases such as asset generation, liquidity mining, and arbitrage trading, which have resulted in a rise in network activity.
The additional features have also aided in attracting new users to the DFiChain ecosystem, with the number of unique wallets holding DFI hitting a new high of 42,555 on December 8.
The total value locked has reached a new high.
According to data from Defi Llama, DFI has experienced a steady increase in total value locked on the DeFiChain protocol, which is presently at an all-time high of $1.83 billion.
The increase in value locked corresponds to the network’s debut of decentralized assets, and it’s clear that users raced to deposit funds to take advantage of the high yield prospects provided to liquidity providers.
Aside from the staking options available on the DeFiChain DEX, bigger DFI holders with at least 20,000 DFI can lock their DFI tokens and run a masternode on the network, earning rewards in exchange for assisting with transaction verification and blockchain security.