The ongoing Bitcoin rally is pulling the entire crypto market upwards. Meanwhile, ether supply is being drawn into the DeFi sector. The market update.
After yesterday’s dive, the Bitcoin exchange rate is back on track in time for the weekend and climbs confidently above the $18,000 mark in the early hours of the morning. Not much is missing until the all-time high. In view of the rapid price increases, reaching the target mark seems to be a mere formality. On a daily basis, the Bitcoin exchange rate increases by 2.8 percent and is thus traded at 18,241 US dollars at the time of going to press.
Bitcoin price in weekly chart
On the way to becoming the new top brand, Bitcoin has already set a new all-time high with a current market capitalization of over 335 billion US dollars. In punkto market dominance the largest crypto currency lets the muscles play thus again opposite the Altcoins. The BTC dominance lies with at present scarcely 67 per cent only not far under the past yearly high of 69 per cent in May. However, this mark should also fall soon if the rally continues.
The re-ignited Bitcoin hype is reflected in a high level of on-chain trading activity. According to Coinmetrics, the number of active addresses on November 18 was over 1.19 million – the highest measured figure since January 2018.
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But Bitcoin is not the only one in the high-altitude rush. Almost the entire crypto market is currently benefiting from the BTC upswing. With the exception of Bitcoin Cash (BCH), all top coins are turning positive on a weekly basis.
In the Bitcoin slipstream, Ether (ETH) in particular is growing rapidly. On Wednesday the second largest crypto currency with 492 US Dollar set up a new yearly high and indicates with a 24-hour plus of 3,2 per cent the next attack on the mark. At the time of going to press, the ether exchange rate was quoted at 485 US dollars and recorded an increase in value of 5.6 percent in a weekly comparison.
Ether exchange rate on the weekly chart
The ether rally is strengthened not least by the constantly increasing integration in DeFi applications. Thus, supply is gradually shifting from the stock exchanges to decentralized finance. As the following chart from Glassnode shows, the share of ether supply in smart contracts has risen to over 15 percent. At the same time, the supply held by exchanges has shrunk to 15.7 million.
The footprint of Bitcoin is also growing in the deFi ecosystem. The circulating supply of Wrapped Bitcoin (WBTC), an ERC20 token covered by Bitcoin 1:1, has already risen to over 124,000 units. At current exchange rates, the Total Value Locked (TVL), i.e. the total volume of tokens integrated in DeFi applications, is thus over 2.2 billion US dollars.
According to Defipulse, the entire DeFi market currently has a TVL of around 13.8 billion US dollars. Wrapped Bitcoin alone thus represents around 16 percent of the total value of all tokens integrated in DeFi applications. Bitcoin is thus continuing to expand its dominance in the up-and-coming DeFi sector, at least indirectly. In its tokenized form of existence as a WBTC, the asset is developing into a fixed DeFi size and is thus once again a beneficiary. After all, the growing demand for BTCs in the smart contract-based sector is also driving up the exchange rate.