Despite the challenge of decentralized finance, Bitcoin defeats the DeFi and remains the king of cryptomonies.
Many sang victory in the past months. For even within the crypto community, many don’t believe in Bitcoin’s future. So, when another sector of the crypto market like decentralized finance began to emerge, while BTC was stagnating or even retreating, several members of the crypto world celebrated. However, as Changpeng Zhao commented in the Tweet of the Day, Bitcoin finally beat the DeFi.
In the blink of an eye, Bitcoin surpassed $15,000.
For several months, nobody within the crypto community talked about Bitcoin. The fact is that even the staunchest defenders of crypto-money had their minds occupied with another booming market: decentralized finance. And so, since mid-July, DeFi projects experienced the biggest boom in their history. Increasing their price exponentially in a matter of weeks.
This, of course, attracted the attention of many Bitcoin investors. They diverted their attention and capital from the BTC market to the DeFi market, in an attempt not to miss the opportunity for quick profits that the decentralized finance fever seemed to promise.
Of course, this outflow of capital from Bitcoin caused its price to stagnate, seriously diminishing the market demand for cryptomoney. Its value was maintained only by the actions of large institutional investors in firms like Grayscale. They kept on acquiring BTC even during the DeFi boom.
However, this boom couldn’t last forever, and when it ended in mid-September, investors began slowly returning to Bitcoin from the DeFi. Boosting the price of the crypt currency, to the point where it is quoted in the order of $15,471 per BTC at the time of writing.
Bitcoin defeats the DeFi by significantly increasing its price.
In this way, Bitcoin has regained the prominence it lost in recent months. Allowing Binance’s CEO and founder, Changpeng Zhao, to assure on his Twitter account „Bitcoin told the DeFi: Have my beer“, a phrase with which he expresses that BTC has defeated the decentralized finances, despite the challenge that they seemed to represent very briefly.