Binance Research: Bitcoin (BTC) Dominance, DeFi, Staking Became Trendy in July
The month of July was pivotal for the crypto markets, as Bitcoin (BTC) gained dominance and new investment opportunities appeared for altcoins.
July was one of the most dynamic months in 2019, shows research by Binance Trading. The most noticeable trend was the ascent of Bitcoin (BTC) and its price dominance over all altcoins. At the same time, altcoins are starting to offer other ways of achieving gains, through staking, as well as various forms of decentralized finance (DeFi).
Decentralized finance is a new trend based on Ethereum (ETH), as well as other coins, where various collaterals of coins, tokens, or stablecoins are locked as collateral for crypto-based loans. DeFi remains highly risky, with interest rates still unstable.
“With a total collateral locked value worth around 500 USD million, the Ethereum-DeFi space witnessed both higher competition with InstaDApp and Compound exhibiting large inflows and a shift in its stablecoin appetite, with the creation of more loans denominated in USDC than in DAI,” the researchers noted.
Still, Maker (MKR) remains the leading crypto lending platform, maintaining its stability.
Staking is having a revival, as revealed by recent listings, including the fully decentralized PoS chain, Algorand (ALGO). A shift to staking means crypto holders are finding alternative use cases to just trading, the research team commented.
For BTC, the month of July was extremely volatile, ending with a net drop of 14% despite reaching a mid-month record above $13,800. But altcoins retreated even more, with a nearly 30% net loss for ETH.
Despite the hype, ALGO ended the month with a significant slide of more than 61%, Binance pointed out, showing that even for projects considered solid, price action is unpredictable and may lead to losses.
Binance also marks increased interest for its decentralized exchange and native blockchain. The Binance DEX trading volume expanded to $3.9 million’s equivalent as of August 7, with the recent listing of a stablecoin based on the British pound. The exchange expanded to 63 trading pairs with reasonable activity, after adding 41 pairs in July.
“Despite its liquidity being much lower than Binance.com, the Binance DEX displayed average daily volumes in July of USD 7.4 million while other Ethereum-based decentralized exchanges usually exhibited average volumes below USD 1-2 million,” researchers pointed out.
Binance’s conclusion is that July was a month of market correction, but the markets have paid off for BTC maximalists.