Hello, and welcome to another edition of Overbit Insights.
We'll start out this week's edition of Overbit Insights much like the last, in which we make an overall assessment of the current market environment for cryptocurrency.
Starting off with Bitcoin, it seems that our "large range" from $50,000 to $62,000 is still intact, dating back to last week. In the early hours of Saturday, 10 April, BTCUSD moved up to test the top of the range at $61,000. It was swiftly rejected and fell down to $58,000, but it has since moved back above and is holding the $60,000 mark.
Going forward, the upper and lower bounds of this range will continue to be the areas to watch. Until either of those break, BTCUSD appears to still be in a large consolidation pattern, something which has undoubtedly benefited the rest of the cryptocurrency market.
Altcoins continue to move upward across the board, some in staggering amounts, with even the large-cap Ripple moving more than 2.5x since April.
As we wrote last week, "it certainly seems like the market has rotated into altcoins for the time being as BTCUSD continues to consolidate.". This certainly still seems to be the case for now, though as Bitcoin continues to test both sides of the current range, it seems time would favour Bitcoin retaking the lead sooner rather than later.
We'll wrap up this week's edition of Overbit Insights with a look at the DeFi project Compound (COMP). Following remarkable growth since the beginning of the year, COMP has been the first-ever DeFi network to reach the $10 billion TVL mark. In just over three months, the assets staked in the lending network have increased fivefold. The figure puts it ahead of Maker (MKR), DeFi's second most successful staking destination, which has a TVL of $8.2 billion at press time.
In addition to ranking first in terms of TVL, COMP has a market capitalization of $2.3 billion, placing it 58th in the overall cryptocurrency market, according to CoinGecko.com. Indeed, Compound's success coincides with an increase in interest in DeFi platforms and their goods. According to DeFi Pulse info, aggregate TVL across all DeFi platforms has reached a new high of $52.6 billion.
This figure reflects a 350% increase in value since the beginning of 2021. Lending platforms such as Compound dominate the market, accounting for 45.8 per cent of the total figure with Compound, Maker, and Aave (AAVE) alone. The most common decentralized exchanges (DEXs) are Uniswap (UNI), Curve Finance (CRV), and SushiSwap (SUSHI), accounting for another 28.7 per cent.
Indeed, DeFi Pulse not only set new highs for TVL across the board but also added hundreds of new projects to its tracking list. As a result, not only are DeFi platforms attracting unprecedented investment, but new projects are also being developed in the space.
Thank you for reading this week's edition of Overbit Insights, and we hope to see you again next week.