Bancor’s native token BNT skyrocketed 86% in just two days, from $1.02 to $1.919. The increase was driven by the increase in trading volume on Coinbase’s listing of BNT and Bancor’s decentralized exchanges.
The listing of Coinbase is the main catalyst for BNT to skyrocket within 48 hours. Coinbase stated on December 16:
“Starting today, Coinbase will support Aave (AAVE), Bancor (BNT) and Synthetix (SNX) on Coinbase.com and Coinbase’s Android and iOS apps. Coinbase customers can now buy, sell, redeem, send or store AAVE, BNT and SNX.”
Although this shocking launch news is a catalyst for BNT’s short-term rise, BNT has been rising since early November due to Bancor’s momentum.
What is Bancor? Why is it skyrocketing?
Bancor is a decentralized exchange (DEX) and automated market maker (AMM). On the Bancor network, anyone can trade ERC 20 tokens and a variety of encrypted assets in the decentralized ecosystem.
With the recovery of decentralized finance (DeFi), Bancor’s daily transaction volume and liquidity continue to increase.
Bancor said on November 19 that the total locked value of the agreement reached $60 million. Bancor stated:
“Bancor’s total locked-in value has exceeded 60 million US dollars! Thousands of liquidity providers are now enjoying the following services: AMM unilateral exposure; arbitrage loss protection; BNT liquidity mining.”
According to CoinMarketCap data, Bancor has processed $14 million in transactions in the past 24 hours. For a decentralized on-chain liquidity protocol, the daily transaction volume of more than 10 million US dollars is relatively high.
In contrast, SushiSwap and Uniswap, the two largest decentralized exchanges on Ethereum, process $44 million and $275 million in transactions per day, respectively.
BTC’s breakthrough of $20,000 will promote the growth of DeFi
If Bitcoin and Ethereum start to rise in the short term, there will be a lot of room for growth in decentralized applications and decentralized exchanges in the DeFi field.
Currently, Bitcoin (BTC) and Ethereum (ETH) are consolidating below key resistance levels. However, several market analysts expect that several bullish signals indicate that they will soon see record highs.
In addition, economist and trader Alex Krüger pointed out that Bitcoin’s continued retest of $20,000 and the low funding rate of Bitcoin futures are catalysts that may push Bitcoin to break through historical highs. He said:
“As the price of BTC approaches $20,000, the longer BTC will stay below $20,000, and the lower its funding rate and futures basis will be. Once it reaches $20,000, its upward trend will be stronger. $20,000 will come. .”
If Bitcoin and Ethereum rise, the demand for DeFi will naturally increase. Many DeFi users often use cryptocurrencies such as WBTC and ETH as collateral to gain more cryptocurrency exposure.
When the market enters an obvious bull market cycle, with the increase in borrowing and transaction volume, the demand for DeFi services will further increase. When the price of ETH increases, add more pledges on Ethereum to ensure that the risk of margin decreases.
As of December 16, the total locked-in value of the DeFi agreement is hovering at a historic high of $15 billion.
