The DeFi introduction in the Binance Smart Chain reaches new highs
Decentralized Finance (DeFi) has taken a well-deserved hiatus in recent months after being one of the hottest sectors in early 2021. However, recent growth across multiple top platforms could point to another DeFi run in the near future.
While projects operated on the Ethereum (ETH) network continue to struggle with sharp fluctuations in gas fees and transaction times, some projects operated on the Binance Smart Chain (BSC) have seen an increase in protocol activity over the past week and the token value.
XVS / USDT vs. CAKE / USDT vs. LINA / USDT 4-hour chart. Source: TradingView
Three projects at BSC where trading volume, price and activity have increased within their DeFi protocols are Venus (XVS), PancakeSwap (CAKE) and Linear Finance (LINA).
XVS / USDT
The Venus Protocol is an algorithmic money market and synthetic stablecoin protocol that provides a credit and credit solution for DeFi on the BSC.
The project’s recent upward movement began to pick up around April 20 when it was revealed that a proposal had been tabled to add Dogecoin (DOGE) to the Venus money market.
After an initial rise and fall in prices, there was a further surge in the dynamics and price activity of the project on April 29, following the announcement of the air drops Venus Reward Token (VRT) and Venus Nonfungible Token (NFT).
The VRT Airdrop (Venus Reward Token) distribution plan and VENUS NFT details for $ XVS (and $ vXVS) holders are now available.
Read all the details below: https: //t.co/kwlVTrwJ47
– Venus (@VenusProtocol) April 28, 2021
The announcement of the airdrops in conjunction with XVS’s listing on the Crypto.com exchange resulted in a 70% increase in the price of Venus from a low of $ 72 on April 29 to a new all-time high of $ 124 on April 30.
XVS / USDT 4 hour chart. Source: TradingView
At the time of writing, the Total Value (TVL) in Venus is nearly $ 10 billion.
Cake / USDT
PancakeSwap is a BSC-based automated market maker (AMM) similar to Uniswap (UNI) that allows users to exchange tokens and earn some of the fees through income farming.
Data from TradingView shows that the price of CAKE rose 102% over the past week, rising from a low of $ 21.90 on April 23 to a new record high of $ 44.28 on April 30, as Token -Owners immerse themselves in the protocol with low fees and high returns.
CAKE / USDT 4 hour chart. Source: TradingView
The price movements for CAKE have steadily increased in the past week after the start of the V2 farms on April 23 and the successful completion of the token migration on April 24.
Since the migration and introduction of the new liquidity pools, the TVL on PancakeSwap has grown to $ 9.873 billion, making the protocol the second tier DeFi protocol for TVL.
Total value blocked for PancakeSwap. Source: Defistation
According to Cointelegraph Markets Pro, market conditions have been favorable for CAKE for some time.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
VORTECS ™ Score (green) vs. CAKE price. Source: Cointelegraph Markets Pro
As can be seen in the table above, the VORTECS ™ Score for CAKE started rising on April 24th, hitting a high of 7 for about 14 hours before rising 62% over the next five days.
LINEN / USDT
Linear Finance (LINA) is a decentralized delta-one asset protocol that can be used to create synthetic asset tokens to represent traditional assets such as commodities, forex, market indices, and other thematic sectors, which can then be traded on the linear exchange .
Data from TradingView shows the price of LINA has risen 70% over the past week, from a low of $ 0.069 on April 23 to an intraday high of $ 0.1164 on April 30 with a 24-hour Trading volume has increased by USD 196 million.
LINA / USDT 4 hour chart. Source: TradingView
The most recent momentum for the project began ahead of the Ask-me-anything session on April 27 with the Moonbeam Network calling itself the “easiest ascent to Polkadot” thanks to Ethereum-compatible smart contracts for a polkadot parachute.
Cross-chain interoperability was one of the main themes of the bull market in 2021, so the prospect of being able to run LINA on the Polkadot network, as well as the BSC and Ethereum networks, may have sparked a new round of interest in the protocol.
As the pool of retail and institutional investors participating in the cryptocurrency ecosystem continues to grow, the DeFi protocols for BSC are well positioned to generate significant profits thanks to low fees and high potential returns.
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