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Bitcoin is Up 70% Year to Date Amidst BTC Critics and Defi Hype

Highlights

    Bitcoin’s volatility has been the center point for Bitcoin critics

    Not only Bitcoin has become a safe haven, but it is also up 70 percent year to date

    While BTC’s dominance remained below 60 percent, ChainLink ($LINK) has more than 40 percent dominance in the Defi space

Bitcoin served as THE BEST safe-haven asset during global COVID crisis

Certainly, Covid-19 affected the crypto industry, specifically the value of Bitcoin during March. However, the recent data revealed by TradingView states that Bitcoin was the second most viewed asset after Tesla stock during July. This data from TradingView, a platform for traders that serves over 10Million highly engaged traders and investors from over 100 countries every month was incredible for the Bitcoiners and crypto community. 

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Bitcoin is Up 70%

In fact, according to Bitcoin proponent Anthony Pomplinano (Pomp), Bitcoin’s price drop during March was nothing but ‘a global liquidity crisis’. In his view, no one was able to define the clear stance on ‘safe haven’ until ‘the crisis was over’. That being said, Bitcoin, as well as other traditional assets such as Gold, has slowly started gearing up. As per Pomp, Bitcoin is ‘up about 70% year-to-date’. In fact, he goes on to elaborate that; 

Bitcoin has actually been the best performer out of the inflation-hedge assets. This means you could argue that Bitcoin has actually served as THE BEST safe-haven asset during this crisis, writes Pomp. Those who said Bitcoin isn’t a safe haven asset not only were wrong, but they are fairly quiet now 🙂

You may also want to know this – Bitcoin Price to Hit $10,000, says This Popular Crypto Speculator

Bitcoin Dominance Remained Below 60 Percent, But it isn’t the only Indicator 

The crypto market which is establishing a bigger user base all over the world due to the trembling monetary system witnessed bitcoin as the most favoured digital asset. Bitcoin jumped above $12000 recently, but failed to find support and hence dipped below. Currently, at the time of reporting, the price of a bitcoin is recorded as $11,778.19 with a negative change of 0.51 percent.

However, many of the other cryptos that have lesser dominance compared to Bitcoin also have recorded massive gains. And hence, the dominance of the largest cryptocurrency is witnessing a decline and dipped below 60 percent accounting for 59.5 percent. 

Many suggest that the bitcoin’s dominance should only be measured against the cryptos that are attempting to be money. Therefore, as per this calculation, Bitcoin’s real dominance would record more than 80 percent.

The Defi market is expanding with surging investments in the protocols that resulted in an increase in market capitalization of Defi to more than $15 billion recently. The focus of the surge was the dominance of the emerging crypto, Chainlink (LINK).

Chainlink has surged with an increase of nearly 123 percent in the last 30 days. However, some analysts predicted a bullish trend for the digital asset. As per them, LINK could possibly cross $30 by this year-end but will probably fail to find any support to maintain.

The Defi market expansion has caused the rapid growth of the most Defi-related protocols. However, there is a significant gap between the most dominant and the next smaller projects. Chainlink, the top-ranked Defi project is currently valued more than $6 billion out of the total $15 billion market capitalization. Whereas the very next project Synthetix Network Token (SNX) market capitalization is around $7 million.

Therefore, if the price of LINK surges to more than $30 then it would be more dominant as Bitcoin in the Crypto market.

Final Note

It is assumed that Chainlink’s dominance in the Defi market holds as good as Bitcoin’s dominance in the crypto market. However, the very next competitor in the Defi market needs to do a long way to come closer to LINK. But the dipping bitcoin’s dominance and slowly growing market capitalization of the other crypto assets like ETC, LINK, ADA, etc, could be a tough competition for Bitcoin. Recently a couple of coins have also recorded prices very close to Bitcoin. 

You may read about it here – Bitcoin Competing Cryptocurrencies – YFI and WBTC

So readers, what’s your take on Bitcoin dominance, Defi market and the fact that Bitcoin is Up 70% year to date? Let’s discuss on Twitter, Tag us @CoinpediaNews

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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