Despite a recent drop in the price of Bitcoin from $42k to $36k, experts and analysts believe the digital currency isn’t doing badly as many people make it look. They said the world’s most-valued digital currency has enjoyed unprecedented growth over the past few years and should be commended for its resilience for being able to bounce back, having experienced a crash in price on many occasions.
Considering the meteoric rise of the digital asset 2020, you would have little or no reason to go against what the experts had said. Witnessing close to a 300% increase in price throughout the past year despite the covid-19 pandemic and its adverse effects on the economy is an achievement that should be commended by every crypto enthusiast.
DeFi’s remarkable growth overshadowed Bitcoin’s improved fortune
Bitcoin’s growth is far below what is seen with smaller coins in the decentralized finance (Defi) part of the crypto space. Defi has been doing great in recent years, and it is seen as the most improved part of the industry in 2020.
The Decentralized Finance space first introduced Bitcoin and other digital assets as an alternative means of transaction to attract crypto investors and the public. The strategic approach worked to a great effect as it ensures that the sector recorded a surge in the number of users in 2019 and 2020.
The development was so massive that Defi — which was valued at $1 billion in January 2020 — is now worth $23 billion within 12 months. Reacting to the Defi space’s success, the vice president of the Swiss Digital Asset Startup Metaco Seamus Donoghue said that the government’s adopted programs aimed at helping average citizens in the fight against Covid-19 played a huge role in the blistering rise of the Defi sector.
Experts explain factors responsible for DeFi’s blistering rise to stardom
He further explained that the high influx of retailers in the industry also increases the fame and success currently enjoyed by the sector. According to him, the retail players aren’t confident in old or traditional financial tools to provide the adequate services needed by individuals who are largely affected by the pandemic. Hence they turned their attention to the Defi, which they believe will provide better services.
Meanwhile, Polkadot — which was established four years ago — has officially become the fourth-largest digital asset in the world following a 500% increase in price in the last 12 months. Ethereum also saw a tremendous rise in value in the same vein as its price improved by 600% in the previous year.
Other Altcoins like Cardano and Defi Tokens are also tipped to see more growth this year than what was experienced in 2020, judging by the increasing number of retail investors exploring Google search to learn more on how to benefit from them.
Lastly, for those interested in Bitcoin and other digital assets’ current market price, we can confidently tell you that Bitcoin stays at $36,407; Ethereum comes second at $1,324; followed by Tether at $1.00 and Polkadot at $16.69.