This has been quite an exciting week. Altcoins have been pumping in ways very similar to the last bull run. It has been a very exciting time, but has the next bull run officially begun? Or is it too early to declare this?
Let's dig into this more.
This new "bull run's" starting point can be officially linked back to last month when the DeFi and Yield Farming hype cycle had begun. In my mind, the exact starting point was when Coinbase listed COMPOUND onto their exchange. When Coinbase announced this listing, most people had no idea what Compound even was. But within 24 hours of the listing, it was the hottest coin out there, credited with started the whole Yield Farming idea. At one point Compound was up over 400-500%, but at this point the price has pulled back some, but still up over 200%.
This lead people to try to get their hands on any DeFi/Yield Farming coin they could find. Here are some of the price gains percentages for the last 30 days for some DeFi coins.
Compound = 205% up
Loopring = 200% up
BAT = 22% up
Augur = 65% up
and the list goes on and on.
And the money keeps pouring into DeFi. Just two months ago, in May there was approximately $800 million value locked in DeFi. But just less than two months later, that same amount is increasing incredibly fast now up to $2.11 Billion locked up in DeFi. And I think this number will only continue to rise.
But it doesn't only stop with DeFi. Chainlink is up to new all-time highs as well. It has been a long time since we could say that a coin has reached a new all-time high, and for the most part, those new highs were only reached during the last bull run so this is incredibly bullish. Chainlink is the most popular oracle coin, and it is currently in a price discovery phase. We don't know what an oracle coin is worth, but Chainlink is the most dominant oracle coin out there, and this has potential to increase even more. Especially if this is a bull run.
Not only that, but Cardano is having a fantastic week as well. Although the reason for Cardano's increase is much different than the others stated above. This was for the most part always expected to happen for Cardano. For the last 1 1/2 month we have seen Cardano's Shelley release date announced, the officially Shelley code was finished, the virtual Cardano summit which included big news that ADA staking is coming to Coinbase Custody. And then of course there is the upcoming official release of Shelley that will also bring staking to the coin. And also there is the upcoming likely hood that Cardano will probably be listed onto Coinbase in the near feature. For Cardano, it isn't a case of if the price will go up or down, it is more of a question of how much the coin will increase in price. If you are a holder of Cardano, that is the time you have been waiting for, and definitely very exciting.
And then there is Dogecoin. Yes I did say Dogecoin. The coin that is a meme, that was originally made to not be taken seriously, all of a sudden has become the talk of the internet. And actually was trending on Twitter and Tik Tok. A video was made on Tik Tok that encouraged its large user base to invest into the incredibly cheap Dogecoin, saying that if enough users invested, they could all make a ton of money. And this video went viral. Within 1 day, the price of Dogecoin went up over 103%! While I still wouldn't recommend investing in Dogecoin, especially with how the price went up, because it is bound to crash, and crash hard, but this is how bull markets begin. Ways to make quick money spreading by word-of-mouth is incredibly powerful, and eerily similar to what happened back in 2017's bull market, when people were putting money into any coin out there they could find.
If you look at Coinmarketcap, almost everything notable is in the green, gone up in price and not just by a small percentage, but by a rather sizable percentage.
But some people might be wondering if all of those coins are going up, why have the price of Bitcoin and Ethereum stayed rather the same? Well this is to be expected actually, and it is exactly what happened during the last bull run. People want to make money quickly, they see the hype trends with the altcoins, and like the cheaper prices of the altcoins even more and then invest in those said coins. The prices of those coins then skyrocket in price. But the longer people are in the market, they then realize they want the "real" coins, the established and brand names coins. The coins that are pretty established and have the safest future. Those being Bitcoin and Ethereum. They will then trade those other coins into Bitcoin and Ethereum cause these to pump as well.
As you can see, I am incredibly bullish. But this is honestly very similar to what was happening when the last bull run started, and it's happening again, today.
I do feel this bull run has just begun. There are too many positive things happening around the industry, and they are all adding up to something big. And right now I am doing my best to accumulate as much as I can to get maximum gains.
Although I will add, the world's situation with Covid 19 could always change things.
What do you think? Has the bull run begun? Or are these just random pumps? What coins are you trying to accumulate now?
As always, thank you for reading!