CRYPTO FRIDAY - All Eyes on Bitcoin
Hey DEFI TIMES community!
It seems like times have changed. While DeFi tokens have been killing it in July/August 2020, people have switched their focus to Bitcoin.
This is nothing new. We have seen this switch over and over again during the bull market in 2017. During this time, we saw "Bitcoin cycles" and "alt cycles". When there was a strong focus on alts, the Bitcoin dominance decreased over a while, and people declared Bitcoin to be losing. When we saw a strong focus on Bitcoin, alts were declared dead.
This is the case in almost any bull market. It is crucial to understand which phase we are currently in. Right now, alts are losing momentum, while Bitcoin is on its way to a new all-time high.
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But don't expect this to last forever because the sentiment can switch quickly. Investors could get greedy again and try to outperform Bitcoin in some way or another.
Especially when Bitcoin reaches a new all times high, we could see money flowing out of Bitcoin and into small caps.
If you understand how bull markets behave, you can front-run the herds. If you were around in 2017, you know what we are talking about. Bull markets are crazy, and it is easy to get lost when everyone seems to outperform you.
Remember: only change your mind when the underlying facts change; sit back and focus on the big picture.
That's it for our small thought piece. As always, stay tuned for SUNDAY THOUGHTS, where we will share our thoughts about the rise of NFTs!!
Read on for the most important news this week!
Infura goes down
Yesterday morning, the largest Ethereum infrastructure provider, Infura, experienced node issues. Applications depending on Infura, like Metamask, went down along with it.
This event showed us that we still face centralization problems inside the Ethereum ecosystem. The fact that one single entity's failure can have so much influence on the Ethereum ecosystem should make us realized that we need to change that. Chris Blec put this very nicely.
By now, the problems have been resolved. Metamask is working without problems again. If you want to read more about the event, we have linked the official Infura statement here.
Aave V2 is now on testnet
Aave's V2 is now officially on testnet. The changes seem like they will make the protocol more efficient.
Andre Cronje suggested that options for Uniswap pairs should come to the Yearn protocol. Hegic Options will power this.
YFI and BAL will be MakerDAO collateral
Users will soon be able to use YFI and BAL as collateral in the MakerDAO ecosystem. Bullish for YFI, BAL, and MKR ;)
1inch released a new update, which includes a pathfinding algorithm, new UI, and optimized gas.
All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.
Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.