One of the most generally used use cases for distributed ledger technology is decentralised finance (DeFi). And it’s now one of the most important ways for blockchain technology to gain traction.
DeFiChain (DFI) bucked the trend last week, rallying 76% to a new high of $5.70 on December 6, as the entire crypto market corrected and Bitcoin (BTC) fell by 22%. The company’s 24-hour trading volume increased from $3.6 million to $24.3 million on average.
The debut of decentralised assets on the DFI mainnet, an increase in transactions and users on the network, and an increase in the total value locked on the protocol are three factors that contributed to the price breakout for DFI.
Traders flock to cryptocurrency and decentralised stocks
The debut of decentralised assets on the DeFiChain network, as well as staking opportunities for holders, has been the most significant source of impetus for DFI in recent weeks.
Users of the site now have access to a variety of pools, including large-cap cryptocurrencies such as Bitcoin and Ether, as well as synthetic copies of major equities and indices, such as Tesla (TSLA), Apple (APPL), and the S&P 500 (SPY). Stakeholders benefit from the platform’s higher-than-average yields in addition to having exposure to these assets.
Gold (GLD), Silver (SLV), the ARK Innovation ETF (ARKK), and the iShares 20+ Year Treasury Bond ETF are some of the other d-asset alternatives available to customers (TLT).
Transaction volumes ascent
An ascent in transactions on the network following the introduction of decentralised assets has also contributed to DFI’s outstanding performance.
The advent of decentralised assets has enabled new use cases such as asset generation, liquidity mining, and arbitrage trading, which has resulted in a rise in network activity.
The additional features have also aided in attracting new users to the DFiChain ecosystem. With the number of unique wallets holding DFI reaching a new all-time high of 42,555 on December 8.
The total value locked reached a new high
According to data from Defi Llama, DFI’s total value locked on the DeFiChain protocol has steadily increased. Reaching an all-time high of $1.83 billion.
The increase in value locked corresponds to the network’s debut of decentralised assets. And it’s clear that users raced to deposit funds in order to take advantage of the high yield prospects provided to liquidity providers.
Aside from the staking options available on the DeFiChain DEX, bigger DFI holders with at least 20,000 DFI can lock their DFI tokens and run a masternode on the network, earning rewards in exchange for assisting with transaction verification and blockchain security.