Press "Enter" to skip to content

DeFi Crypto BAND Explodes 384% QTD on Booming Adoption

  • BAND, the native token of the Band Protocol, rose by as a lot as 384 p.c within the third quarter.
  • The supersonic worth rally appeared amid the continued DeFi craze – and in addition following Band’s growth-oriented partnerships.
  • Nevertheless, the BAND/USD pair stands overbought, which factors to an imminent draw back correction forward.

An explosive shopping for spree within the DeFi sector has despatched one in every of its tokens up by 384 p.c on a quarter-to-date (QTD) timeframe.

Dubbed as BAND, the cryptocurrency is a local asset of Band Protocol, a decentralized oracle that serves as a layer-2 protocol on public blockchains. On July 20, the BAND worth established an all-time excessive at $5.25. At the beginning of this month, it was buying and selling for $1.05.

BAND worth logs as much as 2,287 p.c positive aspects YTD. Source: TradingView.com

BAND additionally jumped larger in opposition to Bitcoin, the highest cryptocurrency by market cap. As of Wednesday, the BAND/BTC pair was buying and selling 341 p.c larger QTD at 51,200 sats.

What’s Pumping BAND

A relaxed and composed Bitcoin, coupled with an ongoing craze for decentralized finance tokens, seems to have helped BAND logging a supersonic worth rally.

Prediction market and oracle cryptocurrencies got here into development through the second quarter. BAND’s closest rival, Chainlink, as an illustration, emerged because the market chief after rallying by 305 p.c in 2020. A big portion of these positive aspects got here throughout Q2.

Backing the oracle rallies had been undertaking upgrades and partnerships. Chainlink utilization within the DeFi area grew as increasingly more initiatives sought it for its information feed providers. The market cap of those DeFi initiatives itself grew by two-fourfold, contributing to a rise in demand for the Chainlink’s LINK tokens.

DeFi, compound, chainlink, band

DeFi sector efficiency in Q2/2020. Source: Messari

The Band Protocol confirmed an identical growth-oriented development. The final two months noticed the undertaking offering oracle options to a plethora of DeFi initiatives. Its newest announcement got here on Wednesday, stating that ICON, a blockchain community, will combine BAND-powered information options onto its platform.

Earlier in July, the Band Protocol entered partnerships with Waves, Neutrino, GuessProtocol, Wanchain, and different blockchain-enabled initiatives. Each deal signaled a better development charge for BAND, which, in flip, translated right into a worth rally.

Correction Risks

The DeFi rally seems engaging however, on the similar time, dangers turning into an overblown transfer. Most of the tokens that rose by 100-400 p.c in Q2/2020 now stands technically overbought. It has elevated their probability of correcting decrease.

BAND faces the identical dangers. The cryptocurrency’s Relative Strength Index readings presently stand at 86. That places BAND within the overpriced class, which can lead to an enormous bearish transfer.

The coin earlier pulled again from its all-time excessive by 30 p.c. Nevertheless, sustained upside momentum within the DeFi market helped its get well again. It continues to commerce below its file peak.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *