The much-advertised altcoins from 2017 see an upsurge in values as the DeFi market picks up steam & becomes a formidable sector in the broader crypto space.
Altcoins ZRX & OMG Upsurge
0x protocol, which elevated millions in an ICO in 2017, was one of the first decentralized exchanges (DEX) to hit the crypto space at the time. However, a lack in demand & the superior user experience provided by centralized exchanges like Binance demonstrated difficulty for the protocol, gaining little traction & hype. Nevertheless, the tables have turned. DeFi is back in vogue & it is lifting altcoin projects upwards. An instance is Chainlink, the decentralized oracle services provider, which remained undervalued for most of 2018-19 but saw a 700% increase in prices this year. At press time, ZRX, the native token of 0x, can boast a comparable narrative. It went up by 71% prior today, backed by solid fundamentals.
0x records that over 30 projects now use its tech to build their applications, which have together processed over 713,000 transactions & handled over $750 million in altcoin trading volume. It’s an initial consumer product, Matcha DEX, which has been a hit as well. Another project, OMG Network, which rebranded from OmiseGo earlier this year, also saw a considerable increase in its token, OMG’s, prices this week. Tether chose the network, the stablecoin backed 1:1 with the US dollar & the world’s 4th largest crypto network, as the latter looked to scale up & move away from the current high fees on the Ethereum network. At press time, altcoin OMG surged over 475% since the start of August from $1.65 to over $9.50 now, on the back of the Tether news.
The DeFi “ripple” Effect
In the meantime, Andrew Kang, a prominent crypto figurehead & investor, pointed out that crypto “Ponzis” alike are enjoying growth as a result of DeFi. Kang noted Based Protocol, a meme project that “yield farmers” had their eyes on subsequently last week, is actually “increasing the value of $SNX for as long as Based continues to lock up capital.” He specified that SNX holders gain benefits because they now get more interest-free leverage. Meanwhile, another side effect, he noted, was the launch of CRV from Curve Finance, which suggestively amplified the yield of sCRV. For crypto fanatics, the DeFi explosion directed to a border explosion in altcoins & the so-called “altseason.”