December DFI Chain Gains At 60%: Reasons For The Price Breakout

Kyber Network
Kyber Network

DFI prices have bounced back from their low swing in the past two weeks this December. Multiple data points indicate that the surge in the fundamentals of the project will witness further improvement.

Decentralized finance or DFI, is among the most widespread technology used for the distributed ledger. It stands as among the leading opportunities for adopting blockchain technology on a wider scale.

The first week of December saw a drop of 22% in Bitcoin valuation and a correction in the bigger crypto market. But decentralized finance upturned the trend with a rally of 76% and established a new peak on December 6th of $5.70. The trading volume for a 24-hour period saw a spike from a $3.6M average to an astounding $24.3M.

Multiple Reasons Attributed For Price Breakout Of DFI

Multiple reasons have been attributed to the price surge of DeFi in December. The decentralized assets launch on the mainnet of the DeFi, a spike in transactions along with the number of network users, and finally, the increase in TVL or the total value that is locked on the DeFi protocol, are the 3 main reasons for the surge.

The biggest cause of the DeFi momentum recently was the introduction of decentralized assets over DFI networks along with holders staking options. Users can now access multiple pools including large-cap cryptocurrencies including Ether (ETH) and Bitcoin (BTC).

The second reason by DFI for the admirable performance has been the surge in network transactions after the decentralized assets’ release. It has been the result of fresh use cases due to the launch of decentralized assets, which include asset creation, arbitrage trading, and liquidity mining.

DFI has also witnessed an increase in total value locked on the DFI chain protocol. It stands at an all-time high of $1.83B.