DeFi tokens see double-digit gains as Ethereum and Bitcoin chase new highs
UMA, LRC and GNO broke out on the heels of ETH hitting a new all-time high and BTC price trading above a key resistance.
Momentum in the cryptocurrency market is back on the rise on Nov. 8 after a solid rally from Bitcoin (BTC) placed its price back above $66,000 and Ether (ETH) hit a new all-time high at $4,793. The gains from the largest two cryptocurrencies helped to kick-start a market-wide rally that lifted the total cryptocurrency market cap above $3 trillion for the first time.
Unlike previous rallies where BTC made significant gains at the expense of the altcoin market, this time the majority of tokens in the top 200 are likewise in the green, with many projects seeing double-digit gains.
Data from Cointelegraph Markets Pro and TradingView shows that the biggest gainers over the past 24-hours were UMA, Loopring’s LRC and Gnosis’ GNO.
UMA releases a cross-chain bridge
UMA, which stands for Universal Market Access, is a platform that specializes in the creation of synthetic assets on the Ethereum blockchain that are self-executing, self-enforcing financial contracts that allow counterparties to digitize and automate any real-world financial derivatives.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $10.72 on Oct. 28, the price of UMA rallied 109% to a daily high at $22.44 on Nov. 7 as its 24-hour trading volume surged 1,329% to $943 million.
The sudden burst in trading volume and price growth for UMA came as the platform launched its “Across Protocol” layer-one-to-layer-two bridge on its mainnet in an effort to offer a fast, cheap, secure bridge for decentralized finance (DeFi) users.
Low fees on Loopring attract new users
Loopring is a zk-Rollups layer-two scaling solution for the Ethereum network that specializes in the creation of decentralized exchange (DEX) and payment protocols.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for LRC on Nov. 5, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for LRC climbed into the green on Nov. 4 and reached a high of 72 on Nov. 5, around five hours before the price increased 76% over the next three days.
The building momentum for Loopring comes as high fees on the Ethereum network continue to push users to explore lower-cost options, which led to a new record-high daily trading volume of $75 million on Loopring on Nov. 2.
Related: Ethereum back in price discovery as ETH approaches $5K
Gnosis proposes a merger with xDai
Gnosis is a protocol focused on building new market mechanisms for DeFi that allow users to securely create, trade and hold digital assets on the Ethereum network.
According to data from Cointelegraph Markets Pro, market conditions for GNO have been favorable for some time.
As seen in the chart above, the VORTECS™ Score for GNO has been elevated in the green zone for the past week and reached a high of 79 on Nov. 5, around 10 hours before the price increased 39.3% over the next two days.
The climbing price of GNO came as the protocol introduced Gnosis Improvement Proposal (GIP) 16, which proposes that Gnosis and the xDai communities should merge their tokens to develop the xDai blockchain under the name “Gnosis Chain.”
The overall cryptocurrency market capitalization now stands at $2.88 trillion, and Bitcoin’s dominance rate is 43.2%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.
