The last couple of weeks have been one of the busiest for the whole DeFiChain team – everyone has been seriously hard at work to deliver one of the most anticipated new product launches in DeFiChain’s recent history. This is supported by a recent study, conducted by leading research agency Santiment, showing that DeFiChain’s development efforts have outpaced the likes of Uniswap and other DeFi industry heavyweights.
Understandably, everyone is eagerly waiting for the next big release — the Fort Canning update. With the update, DeFiChain users will be able to trade stocks, commodities and precious metals in a truly decentralized way. A novel approach, where the price of the underlying asset is tracked by synthetic asset tokens, is paving the way for worldwide accessibility, adoption and a new 24/7 trading experience.
What does this mean for the DFI price?
Flashback to October 2020 when the overall situation looked about the same as right now: The integration of Liquidity Mining for Bitcoin was in the final stages of completion and the overall market conditions were pretty much comparable to present. At the same time, DFI, on which the products and services of DeFiChain build upon, was approaching a new low of US$ 0.20.
Just a few weeks prior, in early September 2020, the DFI price was hovering around US$ 0.35 and within a couple of weeks it declined by around 40%. Irrespective of this decline, the development of the Bitcoin liquidity mining product went ahead as planned and was finally launched early December 2020.
What then followed was nothing less short of an epic final month of 2020. Liquidity mining for Bitcoin drove the price of DFI up to new highs previously unseen. This increase can be mostly attributed to the sizable yields distributed to liquidity providers. The introduction of Liquidity Mining, and the returns being generated amassed a lot of attention, even amongst new entrants, all wanting to participate in the project.
If the past gives us any indication of what the future holds, then we may very well see a similar scenario this year again, when the new Liquidity Mining for stocks launches. As a result, a supply shock scenario could be on the horizon, especially when more people want to get into DFI, making it significantly more expensive to participate in double-dipping on stocks than at current price levels.
This is further supported by the fact that the coin price is directly correlated to the development activity. If we have a closer look at the DFI price action versus the development activity, then we can see that the DFI price is lagging behind. If other projects are any benchmark here, then we should soon see a surge in the DFI price, reflecting the recent uptick in development activity.
Savvy investors are encouraged to make their own picture of the current situation and decide when it’s the right time for them to prepare for the next big product launch on the DeFiChain platform.
Nevertheless, you can find and buy DFI on our growing list of partners here.