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 do not believe in Bitcoin’s future. So, when another sector of the crypto market such as decentralised 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 day’s Tweet, Bitcoin finally beat the DeFi.
For several months, nobody within the crypto community talked about Bitcoin. For even the staunchest supporters of cryptomongering had their minds occupied with another booming market: that of decentralised finance. And so, from mid-July, DeFi projects experienced the biggest boom in their history. They increased 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 decentralised 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 such as Grayscale. They continued to acquire BTC even during the DeFi boom.
However, this boom could not last forever, and when it ended in mid-September, investors slowly began to return to Bitcoin from the DeFi. Boosting the price of cryptomone currency, to the point where it was trading at around $15,471 per BTC at the time of writing.
In this way, Bitcoin has regained the prominence lost in recent months. Allowing Binance CEO and founder, Changpeng Zhao, to claim on his Twitter account „Bitcoin told the DeFi: Have my beer“, a phrase with which he expresses that BTC has beaten decentralised finance, despite the challenge that it seemed to represent very briefly.