Synthetix SNX Compound COMP and Maker MKR soar as Bitcoin

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On Jan. 11, Bitcoin saw a steep correction as it dropped to around $30,500. It began to recover swiftly after the initial correction, rallying above $36,000 in the next 24 hours that followed. DeFi tokens, including Synthetix (SNX), Maker (MKR), and Compound (COMP), outperformed the majority of the market. The primary reasons behind their performance are strong fundamentals for each project and improving market sentiment. DeFi tokens have generally performed well in recent weeks. Maker, for instance, surged by nearly 100% before the Jan. 11 correction alongside other large-cap cryptocurrencies. The market sentiment around DeFi has already been generally positive. The release of highly anticipated roadmaps, like in the case of SNX, further amplified the positivity around the DeFi market. On Jan. 12, Synthetic announced that it is transitioning to Optimistic Ethereum in a blog post detailing its roadmap in 2021. Optimistic Ethereum is a layer two scaling solution that allows users to transact and process smart contracts without encountering the scalability challenges that plague the Etheruem network. When the Ethereum blockchain network becomes clogged, traders are forced to pay over $100 to $200 to process complex transactions. On layer two networks like Optimistic Ethereum, it is possible to offset these scaling issues. The Synthetix team explained:Other DeFi protocols and automated market makers (AMM) plan to eventually move to layer two scaling solutions, like SushiSwap as an example. On top of the strong roadmaps of the so-called DeFi “bluechip” projects, the U. S. Comptroller of the Currency released an oped in the Financial Times discussing the potential to grant DeFi protocols banking charters. Brian Brooks, the Acting Comptroller of the Currency and the former chief legal officer at Coinbase, wrote:DeFi giants Synthetix (SNX), Maker (MKR), and Compound (COMP) rallied strongly as the price of Bitcoin ( BTC ) recovered. Traders are generally optimistic around DeFi tokens and their resilience as well. Flood, a pseudonymous trader, said :


All data is taken from the source: https://cointelegraph.com/
Article Link: https://cointelegraph.com/news/synthetix-snx-compound-comp-and-maker-mkr-soar-as-bitcoin-stabilizes


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