Categories: Altcoin NewsDeFi News

Potential Ethereum Killer Rises 20% After FTX DeFi Project Announcement

The recent crypto bull market can be partly attributed to the huge uptrend in DeFi tokens, following a bull run in Ethereum. Due to the…

advertisement

The recent crypto bull market can be partly attributed to the huge uptrend in DeFi tokens, following a bull run in Ethereum. Due to the widespread distribution of Ethereum and years on codes on solidity, there is the leading or the only platform for issuing these Dapps. This begs a question though.

Advertisement

On raised by Meltem Demirors, the CSO of Coinshare and probably echoing with many altcoin investors.

why doesn’t someone just build DeFi on a different base layer

There are few motivations for this as well due to rising GAS fees; the root of the problem with restricted the bull run of 2017, scalability and high fees.

FTX DEX on Solana

Comes, FTX DEX (Decentralization Exchange) is a decentralized version of the FTX centralized exchanges. The daily gain on SOL tokens is currently at 21%. Moreover, the compiled three-day rise in the token from 0.99 is over 100% with the high at $2.06.

SOL/USD 1-Day Chart on Binance (TradingView)

Moreover, the rise in the tokens price above $1.5 is attributed to the addition of $SOL tokens across FTX exchange itself. The announcement included a Tesla Truck Giveaway program along with 10,000 SOL tokens. The subsequent rise this morning was extended by the announcement of project serum.

Advertisement

However, the supply of Solana might be a concern for long-term hodlers because of the supply schedule by the end of the year.

Moreover, there are other competitors to Solana as well like Tezos, Tron, Cardano, Ethereum Classic and so many others with faster transaction capabilities.

Why an Ethereum Killer?

Ethereum processes 7 transactions per second, and Serum will be leveraging a tremendously faster platform in the form of Solana. According to SBF Alameda, the founder of FTX exchange it is considerably decentralized as well. He tweeted,

Last but not the least, in a crypto bull market, hefty gains on positive catalysts are not uncommon. This is also reminiscent of the Coinbase effect where addition on the exchange causes a rise in tokens’ price. Currently, FTX is one of the leading derivatives market, and also a platform for a large number of secondary derivates based on volatility and other factors.

Do you think the expansion of DeFi to other platforms will be bullish for the markets in general? Please share your views with us.

To get the daily price analysis, Follow us on TradingView

Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Recent Posts

DeFi Mania Continues to Catalyze DEX’s Volume

Decentralized exchanges [DEXs] has recorded phenomenal growth in 2020. And it is not the user…

16 hours ago

CrossFi Solutions Can Overcome the DeFi Hype in Building a Sustainable Future for Decentralized Finance

Decentralized Finance (DeFi) is no-brainer the crypto ‘buzzword’ of 2020, this space has experienced tremendous…

10 hours ago

Security Risks in DeFi (Decentralized Finance)

Decentralized finance has been the talk of the town for the last few months, seeing…

11 hours ago

Bitcoin Trading Volume on Bakkt Peaks Again as September Expiration Approaches

Bakkt recently had witnessed a peak in the trading volume of physically-settled bitcoin futures on…

16 hours ago

Bitcoin To 10x From These Levels Says Analyst, Predicts Other Giants to Follow MicroStrategy

Business Intelligence Firm MicroStrategy created a massive buzz by announcing BTC purchase worth $425 million.…

16 hours ago

Rubic, A Decentralized P2P Exchange Solving The Scalability Problems On DEFI

Rubic is a decentralized P2P platform that enables users to create, manage, trade, and exchange…

17 hours ago