KEY POINTS
- Bitcoin remains bearish as DeFi and Metaverse tokens rise
- Valkyrie Investments to Launch $ 100 Million DeFi Fund
- Goldman Sach Says DeFi Has A ‘Convincing’ Use Case
The explosion of the DeFi industry in 2021 was nothing short of a spectacle. Following this trend, blockchain and Metaverse token based games are now rallying to new all-time highs, even as traditional digital assets fall below support levels.
Bitcoin and Ethereum are down more than 12% from all-time investor highs seen on November 10. According to data from CoinMarketCapAt 11:47 p.m. ET, Bitcoin is still unable to break through resistance at $ 60,700 as Ethereum prices have risen by $ 43.93.
Metaverse tokens such as Decentraland and The Sandbox tokens also followed the explosive price trajectory, with data from CoinMarketCap showing an 8.2% and 28.2% price surge, respectively, for tokens this week. Facebook’s transition to Meta fueled the fire of widespread appreciation and adoption of the Metaverse.
One of the news that has contributed to this Defit token recovery is that Valkyrie Investments, which previously obtained SEC approval for a Bitcoin futures exchange-traded fund (ETF), announcement plans to launch a $ 100 DeFi fund with investments from various investors in the US and around the world. The firm will invest in more than a dozen protocols that exist on 13 different blockchains.
A bright future can be expected for DeFi 2.0 and 1.0 protocols, including Solana, Avalanche, Magic, Fantom, Binance Smart Chain and Ethereum, Wes Cowan, chief executive of DeFi, told the media.
Goldman Sachs said in an October report that DeFi, with its easier access for the underbanked and faster settlements, has shaken up the traditional financial system. “The DeFi market has grown significantly since mid-2020 – around 10 times over the most common summary measure,†noted the report.
The report also noted that the DeFi industry grew from $ 10 billion in 2020 and is currently worth $ 100 billion, with a total value locked in (TVL) of $ 260.4 billion.
After Bitcoin’s fall last week, DeFi protocols like GALA, CRO and AVAX rose to double digits, according to data from CoinMarketCap, highlighting what Goldman noted earlier: “They also demonstrate a compelling use case for blockchains and cryptocurrency technology that should help support the market valuations of these assets over time.
