YFI/USD Daily Chart
Most top DeFi-related tokens have outperformed Bitcoin (BTC) and other Altcoins. The strong performance from DeFi tokens has far outweighed that of Altcoins within the top-10 category. Even Chainlink (LINK) or UMA’s massive surge couldn’t outpace the DeFi move.
However, the loop between DeFi and other cryptocurrencies like XRP and Stellar (XLM) appears to be an inverse one. The DeFi rave has quieted discussions bothering cross-border payments. Privacy coins like Monero (XMR) seem to be affected by the DeFi rave in this manner.
Jason Choi of Spartan Group stated earlier that Bitcoin forks which include Litecoin (LTC), Bitcoin Cash (BCH), and BSV, stand a chance of losing their market share to Bitcoin and Ethereum accruing from DeFi, this he stated:
“I can’t find a defensible thesis for most $BTC forks (LTC, BCH, BSV) over the long term. With the emergence of fee-accruing tokens in DeFi, seems natural that capital parked in these glorified digital pet rocks either flow to BTC or DeFi.”
Total USD Locked On to DeFi Protocols. Courtesy: DeFi Pulse
This statement above will most likely be the scenario until the DeFi bubble bursts with the Sushiswap ‘acquisition’ drama, the Yam token imbroglio quite an item to brood upon. In the future, a part of DeFi profits will likely trickle back into Bitcoin and Altcoins as investors look for ‘safer’ assets to earn interest in.
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