Compound jumps 40% while Aave and Uniswap enjoy 20% gains
The Chinese clampdown on mining continues to drive uncertainty in the market, along with the ramp up of regulatory discussion in the U.S. Yet this is matched by equal amounts of positive news, with Michael Saylor’s Bitcoin Mining Council finding the cryptoasset to be more sustainable than often thought, and institutional giants Soros Fund Management and Point72 entering the fray.
Despite the uncertainty capping gains for top cryptoassets, tokens in the DeFi sector are moving up a gear. Compound has made a convincing resurgence with 40% gains, and Aave and Uniswap are outpacing Ethereum with double-digit wins.
This Week’s Highlights
- DeFi swings higher on institutional hopes
- Bitcoin goes green on sustainable mining statistics
DeFi swings higher on institutional hopes
The biggest winner of the week is the DeFi sector, with new projects aimed at institutions catalyzing higher prices for leading tokens.
Comp, the governance token of Compound, added 40% after the launch of Compound Treasury. This new product aims to act as a savings account, allowing big investors to deploy stablecoins for guaranteed returns of 4%.
With lower gains of 20%, competing lending protocol Aave also surged after news emerged that it will be delivering DeFi yields to institutions with Aave Pro.
Bitcoin goes green on sustainable mining statistics
Ever since Elon Musk tweeted that Tesla won’t be accepting transactions until Bitcoin uses 50% clean energy, environmental concerns have cast a shadow over the crypto market.
Last week however, Bitcoin’s true environmental credentials were brought to light as the Bitcoin Mining Council announced that in the second quarter of 2021, mining relied on an electricity mix that was 56% sustainable.
Whether Musk will accept these new mining statistics could be revealed on July 21st, when the self-proclaimed Technoking is set to discuss Bitcoin with Twitter founder Jack Dorsey.
As Americans step away from their desks to celebrate the Independence Day holiday, we may see quiet markets early in the week.
However, some traders are expecting fireworks from the selling of GBTC shares. This event could catalyze volatility as Grayscale Bitcoin Trust investors cash out, but analysts are divided over whether the impact will be bullish or bearish.
Elsewhere, we could see volatility spill over from the stock market on Wednesday afternoon as the Fed releases minutes from its last meeting. These could contain key details about future monetary policy.
You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.