Several DeFi tokens saw their prices breakout on Feb. 4 as Bitcoin (BTC) and Ether (ETH) prices traded sideways for the day. Aside from the general bullish trend permeating the DeFi sector, positive comments from big-name investors touting the benefits of blockchain technology and DeFi appear to be lifting sentiment throughout the sector.

Currently, Bitcoin price is still struggling to reclaim the $38,000 level and according to Cointelegraph analyst Marcel Pechman, top traders may have added to their short positions as BTC rallied toward $38,000 on Feb. 3.

667af230 397d 44a6 88af 1775a94d4a3a
Daily cryptocurrency market performance. Source: Coin360

Elon Musk made waves again as his “DOGE” tweet resulted in a sharp volume spike which sent Dogecoin (DOGE) into a 48% rally to $0.054. XRP price also broke out, rallying 12.45% to a daily high at $0.4365.

Universal Market Access (UMA) saw its price explode by 158% to reach a new all-timeat $44.25 before correcting to its current value of $33.13. Decentralized exchange liquidity provider 0x (ZRX) also spiked 70% to a new 2021 high at $1.35.

ec4ffa08 7dde 4074 8ae3 1c58f86fd3cc
AAVE vs. MKR vs. COMP percentage growth 4-hour chart. Source: TradingView

DeFi lending platforms AAVE, Compound (COMP) and Maker (MKR) all established new all-time highs as their prices have spiked 46.68%, 36.6% and 22.69% respectively.

Traditional markets rally higher

Traditional markets also caught a boost as stocks saw their fourth straight day of gains led by tech stocks like eBay (EBAY), which saw its price increase by 5%, and PayPal (PYPL) whose shares rallied 7%.

The S&P 500, Dow and NASDAQ all closed the day well into the green, up 1.09%, 1.08% and 1.23% respectively.

DeFi attracts mainstream attention

Increased attention from business leaders like Mark Cuban and institutions such as Grayscale Investments has brought increased attention to the crypto sector and also highlights the rapidly increasing involvement of traditional finance in the cryptocurrency ecosystem.

7e8a366e 543c 44d7 81cc 418eb2adce12
BTC/USD daily chart. Source: Coin360

With MicroStrategy CEO Michael Saylor offering a ‘Bitcoin Bootcamp’ to more than 1,400 publicly traded companies over the past 2 days, the recent price movements and increased trading volume seen today could be the start of wider adoption and increased inflows into Bitcoin and the emerging DeFi ecosystem.

The overall cryptocurrency market cap now stands at $1.13 trillion and Bitcoin’s dominance rate is 60.9%.


Dai vs. Traditional Fiat: Examining the Advantages and Disadvantages

In the world of finance, the emergence of cryptocurrencies has brought about significant changes to the traditional financial landscape. One such cryptocurrency that has gained considerable attention is Dai. In ...
Read More

Finding the Best Crypto News Sources in 2023

The cryptocurrency market is fast-paced and ever-changing. With new projects launching, regulations shifting, and prices fluctuating daily, it's essential for crypto investors to stay up-to-date on the latest developments. However, ...
Read More

Top 5 Best Memecoins in 2023

It's the year 2023, and the meme culture got more popular than anytime. Every industry started to use memes for marketing or purely for fun. The crypto space is not ...
Read More

Momentum Trading in Cryptocurrencies: Riding the Price Trends to Profit in 2023

In the ever-evolving world of cryptocurrencies, momentum trading has emerged as a prominent strategy for savvy investors seeking to capitalize on price trends. With the volatile nature of digital assets, ...
Read More
Australian crypto exchange launches learning scheme

Australian crypto exchange launches learning scheme

There has barely been a day over the past year or so when crypto has been out of the news in Australia. It all began with the sudden collapse of ...
Read More
Share with Others