Three reasons why DeFiChain (DFI) prices rose 60% in December
Decentralized finance (DeFi) provides one of the most widely applicable use cases for distributed ledger technology, and it is now one of the main ways to adopt blockchain technology more widely.
Last week, with the correction of the broader cryptocurrency market and Bitcoin (Bitcoin) Fell 22%, and DeFiChain (DFI) bucked the trend and rose 76%, setting a new high of US$5.70 on December 6. Its 24-hour trading volume soared from an average of US$3.6 million to US$24.3 million.
The three reasons for the DFI price breakthrough include the launch of decentralized assets on the DFI mainnet, the surge in transactions and users on the network, and the increase in the total value of the lock-in agreement.
Traders pour into decentralized stocks and cryptocurrencies
The biggest source of motivation for DFI in recent weeks has been the launch of decentralized assets on the DeFiChain network and the provision of pledge options for holders.
Users of the platform can now access multiple pools, including large-cap cryptocurrencies such as Bitcoin and Ethereum, as well as synthetic versions of popular stocks and indices, including Tesla (TSLA), Apple (APPL), and Standard & Poor’s 500 (SPY) ). In addition to access to these assets, equity holders also benefit from the above-average rate of return on the platform.
Other asset options available to users include gold (GLD), silver (SLV), Ark Innovation ETF (ARKK) and iShares 20+ year Treasury ETF (TLT).
Surge in transaction volume
Another reason for the strong performance of DFI is the increase in transactions on the network after the release of decentralized assets.
The surge in network activity is largely due to the launch of decentralized assets that have made new use cases possible, including asset creation, liquidity mining, and arbitrage trading.
The new features also help attract new users to join the DFiChain ecosystem. The number of unique wallets holding DFI reached a record high of 42,555 on December 8.
Locked total value hits a record high
DFI also sees a steady increase in the total value locked in the DeFiChain protocol. According to data from Defi Llama, it has reached a record high of US$1.83 billion.
The surge in lock-in value coincides with the launch of decentralized assets on the network. It is clear that users are eager to deposit funds to obtain high-yield opportunities available to liquidity providers.
In addition to the mortgage function provided by DeFiChain DEX, larger DFI holders with at least 20,000 DFIs can also choose to lock their DFI tokens in order to run a master node on the network and receive rewards in exchange for helping verify transactions and secure blocks chain.
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