Social analysis has always been a safe way to determine the trend of the market and argue which token or altcoin is taking which route. Recently, many of the altcoin projects have received adequate predictions on this side. However, there is no momentary fluctuation. On the other hand, the three largest ERC20 NFTs CHZ, Decentraland and Enjin are the top performing cryptos. We take a look at the data…
DeFis explode in 2021 and continue
Since the new year, DeFi and NFTs are attracting a lot of attention and recently, the total number of addresses has reached over 3 million, recording a new milestone. In fact, the total market cap of the top 100 DeFi tokens had started to pick up from mid-January. Afterwards, May peaked with the crypto peak. In addition, “DeFi” on Google Trends produced interesting increases that followed the same chart as DeFi’s total market cap. Many experts feel that the rise of DeFi has helped make it more liquid with NFTs, making users see them as a more realistic investment opportunity.
What’s going on in CHZ, MANA, and ENJ?
As we report , Chiliz, Decentraland and Enjin saw nearly coordinated price action, with CHZ rising 35% from the bottom and MANA rising 70%. In particular, Chiliz is 3% in price mid-February and March. It recorded an increase of 690. In one-on-one form, ENJ rose dramatically from $0.5 in February to $3.2 in April. More recently, DeFi has come to the fore again after Jack Dorsey announced that Square is launching a business dedicated to “decentralized financial services” using Bitcoin. Many experts in the sector also attributed the rise of NFTs as proof of how this area of finance can lead to promising developments such as the adoption of Web 3.0.
At the same time, CHZ saw a sufficient increase in active addresses in MANA and ENJ. A strong rise in the middle related to the free release of the UFC token on Chiliz on June 30 put the altcoin in a leading position in terms of on-chain address activity. The other two gained about 30% one-on-one. CHZ’s active addresses also recorded a healthy increase at the time of writing.
A decrease in volume is observed despite the increase
On the other hand, while metrics such as active addresses and whale accumulation paint a nice picture for these three alternatives, network growth reveals alarming data. Likewise, trade volumes are starting to decline. Most valuable, the CHZ whales had more active whales than MANA and ENJ, although the activity of the CHZ whales seemed to be decreasing. Network growth remained almost constant as the price rose, highlighting the lack of confidence in the strength of the network.
Finally, this slowdown in network growth across DeFi can presumably be attributed to the many hits the network has faced recently. Recently, the DeFi Education Fund announced that half of the one million UNI tokens donated to it through the UNI administration have been liquidated. Similarly, the cross-chain bridge ChainSwap was attacked by the second vulnerability in eight days, just a week ago.