The Bloomberg Galaxy Crypto Index, which measures the performance of the most popular coins, has risen 66% this year, surpassing the 20% increase in the price of gold.
Great decentralized finance fever DeFi helped lead the cryptocurrency to be the world's most bullish asset in 2020. And one of the main reasons was the rise in the price of Ethereum and Bitcoin, of which Ethereum took a more important position.
From the beginning of the year until now ETH price is up 163% and is trading around $ 330, while the big brother bitcoin is up 46% this year, now trading at $ 10,308.
The Bloomberg Galaxy Crypto Index is outpacing stocks, bonds or other commodities.
DeFi's widespread adoption has spiked ETH prices and spurred demand for them blockchain and more. Because the majority of DeFi projects currently launch on the Ethereum blockchain.
Another reason for this growth is that many people are concerned about 'pumping' too much money from the central banks of countries to deal with the pandemic, which will weaken the dollar and increase the inflation rate. play.
As CEO of Two Prime, Mr. Marc Fleury said: "During the coronavirus crisis, bitcoin is the name that benefits the most, it is considered as a safe 'haven' like gold when the economic situation is so strong. unstable world ”.
"DeFi is growing in popularity, it has driven the entire crypto market up this year," said Mike McGlone, chief strategist at Bloomberg Intelligence.
According to analysts from CNN, the reason for the digital currency Bitcoin The recent price increase is due to the remarkable decline of the USD. In recent months, the US dollar's decline was caused by the US Fed keeping interest rates low and the economic downturn due to the spread of Covid-19 in the United States.
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