Several DeFi tokens saw their prices break out as Bitcoin on February 4 (BTC) and Ether (ETH) prices traded sideways for the day. Aside from the overall bullish trend pervading the DeFi sector, positive comments from major investors Touting the benefits of blockchain technology and DeFi seems to be lifting sentiment across the industry.
Currently, Bitcoin price is still struggling to reclaim the USD 38,000 level and according to Cointelegraph analyst Marcel Pechman, Top traders may have increased their short positions while BTC rose to $ 38,000 on Feb. 3.
Universal Market Access (UMA) saw his price explode by 158% to reach a new all-time of $ 44.25 before correcting to the current value of $ 33.13. The decentralized liquidity provider 0x (ZRX) also rose 70% to a new high in 2021 at $ 1.35.
DeFi Lending Platforms AAVE, Compound (COMP) and Maker (MKR) all set new record highs as their prices rose 46.68%, 36.6% and 22.69% respectively.
Traditional markets are rising higher
Traditional markets also got a boost when stocks saw their fourth consecutive day of gains, led by technology stocks such as eBay (EBAY), which saw its price rise 5%, and PayPal (PYPL), whose stock rose 7%.
The S&P 500, Dow and NASDAQ all ended the day far in the green with 1.09%, 1.08% and 1.23% respectively.
DeFi is attracting mainstream attention
The increased attention from business leaders such as Mark Cuban and institutions such as Grayscale Investments has led to more focus on the crypto sector and the rapidly increasing involvement of traditional finance in the cryptocurrency ecosystem.
With MicroStrategy CEO Michael Saylor taking an ‘Bitcoin BootcampFor more than 1,400 listed companies in the past 2 days, the recent price movements and increased trading volume today could be the start of broader adoption and increased inflows into Bitcoin and the emerging DeFi ecosystem.
The total cryptocurrency market cap is now at $ 1.13 trillion and Bitcoin’s dominance is 60.9%.