Home Analysis This Binance-Sponsored DeFi Coin Has Surged 600% in the Past Week

This Binance-Sponsored DeFi Coin Has Surged 600% in the Past Week

5 min read

It appears that the decentralized finance (DeFi) bull market has returned after a two-month hiatus. Top coins pertaining to this space have seen a rapid surge over the past few weeks as buying pressure returns to this space.

Mostly, it’s been large-cap investments that have enjoyed strong rallies: Yearn.finance’s YFI, Synthetix Network Token (SNX), and many other players in this class have gained around 100% from their local lows. Many of these coins saw brutal drops in September and October as early adopters sold the cryptocurrencies en-masse.

But smaller, newer DeFi coins have begun to rally as well.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

What is Alpha Finance?

In the past 10 days, Alpha Finance Lab‘s native ALPHA token has surged approximately 600% from ~$0.02 to $0.147 as of this article’s writing.

ALPHA is the native token of Alpha Finance Lab, supported by Binance Launchpad and investors such as Spartan Group and Multicoin Capital. The project is focused on building out an ecosystem of cross-chain DeFi products that “will interoperate to bring optimal alpha returns to users.”

Alpha Finance Lab’s primary product right now is Alpha Homora, which is an Ethereum yield farming tool that allows users to obtain leverage with their DeFi farms:

“Alpha Homora, which is on Ethereum, is a protocol for leveraging your position in yield farming pools. ETH lenders can earn high interest on ETH, and yield farmers can get even higher farming APY from taking on leveraged positions on yield farming.”

The project’s developers are working on other tools that will allow DeFi users to obtain an optimal amount of yield on their positions.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Institutional Interest 

ALPHA’s rally comes as an increasing number of investors in the space have begun to discuss the Alpha Homora product.

Kelvin Koh, a former partner at Goldman Sachs and current partner at crypto fund Spartan Capital, recently stated on the DeFi product:

“Yields on Sushiswap and levered strategies on Alpha Homora starting to look interesting again…”

Jason Choi, the head of research at Spartan, also referenced Alpha Homora in a recent tweet. He said that this is the only platform where he has seen native leverage and yield farming available on one platform.

As the DeFi bull market returns, investors will seek an increasing amount of yield on their DeFi yield farms and investments. Alpha Homora offers users an easy way to obtain access to that leverage.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: alphausd, alphabtc, alphaeth
Charts from TradingView.com
This Binance-Sponsored DeFi Coin Has Surged 600% in the Past Week

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Cardano Loses 3rd Spot On Crypto Top 10, Why It May Drop Even More

Cardano has now lost its spot at the 3rd place on the crypto top 10 as its price had refus…