Band Protocol (BAND), a rival blockchain community to Chainlink (LINK) — which is also at an all-time high — surged by 65%. Inside 24 hours, BAND rose from $4.825 to $8, setting a brand new report excessive.
Three main catalysts seem to have triggered the rally of BAND, specifically the DeFi (decentralized finance) growth, Coinbase itemizing and new partnerships.
The each day chart of BAND. Supply: TradingView.com
Since June 1, the total value locked in DeFi protocols increased from $1.04 billion to $4.47 billion. The valuations of DeFi-related challenge tokens has risen considerably because the capital concerned within the DeFi house surged by greater than four-fold.
Band Protocol, like Chainlink, is a blockchain community for oracles. DeFi protocols depend on oracles to retrieve market knowledge, as they can not entry uncooked knowledge from different blockchains or web sites. As such, oracles are important to the success of DeFi functions.
Because the DeFi market is quickly increasing, the demand for oracles can be growing in tandem. DeFi initiatives technically might make their very own oracles nevertheless it requires time and sources to develop them. That’s the place oracles like Band Protocol and Chainlink are available.
Chainlink, equally, has seen a powerful efficiency over the previous month. Since July 6, the worth of LINK rose from $4.74 to $9.6, by greater than 100%.
Coinbase itemizing of BAND
On Aug. 5, Zach Segal, the top of listings at Coinbase, stated Coinbase Professional would checklist Band Protocol. The official Coinbase Professional account stated it will checklist BAND by August 10, so long as liquidity situations are met. The Coinbase Professional staff said:
“Mon, Aug 10, our BAND-USD, BAND-BTC, BAND-EUR & BAND-GBP order books will enter transfer-only mode, accepting inbound transfers of BAND in supported areas. Orders can’t be positioned or crammed. Buying and selling will start on/after 9AM PT the next day, if liquidity situations are met.”
Inside one hour, the worth of BAND surged from $5.6 to $8, after the Coinbase Professional itemizing was introduced. Many cryptocurrencies have seen robust rallies within the run as much as Coinbase listings. However after the itemizing, as seen within the case of Compound (COMP), they have an inclination to see take-profit pullbacks.
Direct partnerships with DeFi platforms
On Aug. 4, Band Protocol and Elrond announced a partnership to make use of Band’s oracles to fetch off-chain knowledge feeds. On the time, Elrond CEO Beniamin Mincu stated:
“Cross-chain knowledge availability will speed up DeFi functions being constructed on Elrond, whereas off-chain knowledge will open the door for a mess of potent enterprise functions.”
Based on CoinMarketCap, Elrond has a market capitalization of $278 million and is the 43rd cryptocurrency by market cap. Backed by Binance Labs, it’s a proof-of-stake (PoS) blockchain community constructed for large-scale decentralized functions (DApps).
Based mostly on the latest pattern of BAND, early buyers have expressed optimism in the direction of the challenge. Kelvin Koh, the co-founder of Asia-based enterprise capital agency Spartan Black, said:
“Congrats to the BAND staff. Nicely deserved recognition for a staff that works tremendous onerous and has confirmed that it could go in opposition to the chances. I count on extra partnerships and alternate listings to come back on the again of this.”
Michael van de Poppe, a full-time dealer on the Amsterdam Inventory Trade, identified that tokens launched from the Binance Launchpad has typically carried out nicely. He said:
“We have seen some wonderful runs on the IEO’s of Binance. Strongest movers are; KAVA, ERD and BAND as all of them pulled a transfer of greater than 10x. Lately, $PERL additionally joined the get together with an enormous breakout. I believe CELR, ONE and BRD can nonetheless be a part of.”
Whether or not the robust momentum of BAND might offset the specter of a post-Coinbase itemizing sell-off many cryptocurrencies noticed in latest months stays unsure. For now, oracles and DeFi-related blockchain initiatives look like seeing a rise in demand.