- BAND, the native token of the Band Protocol, rose by as much as 384 percent in the third quarter.
- The supersonic price tag rally appeared amid the ongoing DeFi fad – and also adhering to Band’s growth-oriented partnerships.
- Nonetheless, the BAND/USD pair stands overbought, which details to an imminent downside correction forward.
An explosive getting spree in the DeFi sector has despatched a person of its tokens up by 384 p.c on a quarter-to-day (QTD) timeframe.
Dubbed as BAND, the cryptocurrency is a native asset of Band Protocol, a decentralized oracle that serves as a layer-2 protocol on public blockchains. On July 20, the BAND selling price recognized an all-time higher at $5.25. At the commence of this month, it was trading for $1.05.
BAND price logs up to 2,287 percent gains YTD. Source: TradingView.com
BAND also jumped increased towards Bitcoin, the top cryptocurrency by current market cap. As of Wednesday, the BAND/BTC pair was buying and selling 341 % bigger QTD at 51,200 sats.
What is Pumping BAND
A quiet and composed Bitcoin, coupled with an ongoing trend for decentralized finance tokens, seems to have helped BAND logging a supersonic value rally.
Prediction sector and oracle cryptocurrencies arrived into development through the 2nd quarter. BAND’s closest rival, Chainlink, for occasion, emerged as the market place chief immediately after rallying by 305 % in 2020. A huge part of all those gains arrived all through Q2.
Backing the oracle rallies were being job upgrades and partnerships. Chainlink utilization in the DeFi space grew as a lot more and much more tasks sought it for its facts feed solutions. The marketplace cap of these DeFi initiatives alone grew by two-fourfold, contributing to an improve in demand from customers for the Chainlink’s Hyperlink tokens.
DeFi sector overall performance in Q2/2020. Supply: Messari
The Band Protocol confirmed a similar growth-oriented craze. The previous two months observed the venture furnishing oracle options to a plethora of DeFi initiatives. Its hottest announcement came on Wednesday, stating that ICON, a blockchain network, will combine BAND-run info options on to its system.
Previously in July, the Band Protocol entered partnerships with Waves, Neutrino, BetProtocol, Wanchain, and other blockchain-enabled projects. Every single offer signaled a larger development charge for BAND, which, in convert, translated into a cost rally.
The DeFi rally seems eye-catching but, at the very same time, threats starting to be an overblown move. Most of the tokens that rose by 100-400 per cent in Q2/2020 now stands technically overbought. It has improved their probability of correcting decrease.
What season comes following winter season? al____ pic.twitter.com/RN5l7hdgik
— CZ Binance (@cz_binance) July 20, 2020
BAND faces the same challenges. The cryptocurrency’s Relative Power Index readings at the moment stand at 86. That puts BAND in the overpriced classification, which might lead to a enormous bearish move.
The coin before pulled back from its all-time high by 30 per cent. Nevertheless, sustained upside momentum in the DeFi market place helped its get well back. It proceeds to trade below its file peak.