Altcoins, particularly the DeFi sector, led a bullish charge on Monday after some decentralized finance tokens saw their prices increase by more than 60% as Bitcoin price pushes to the $38,000 level trading zone. The push in BTC price has caused its market dominance to gain over 10% to currently stand at 44.32%.
Some analysts are describing the move as a “false move up” but despite these concerns, the bounce in prices seen across the market is a welcome sight for cryptocurrency investors who experienced last week’s historical market dip that saw the market capitalization drown to as low as $1.2 trillion on Sunday.
The biggest bounce-back performance amongst the top 200 coins was seen in the Ethereum (ETH) layer-two solution cryptocurrency and Polygon’s MATIC, which has emerged as the leading Level 2 solution in the market in recent weeks. MATIC is currently trading $1.83, up 41% in the last 24 hours.
Decentralized finance (DeFi) cryptocurrencies have also been at the front of the comeback, with Maker (MKR) surging 30% in the last 24 hours to trade at $3,850 and Yearn.finance (YFI) gaining 45% in the last 24 hours to now trade above the $49,000 level.
Other notable DeFi price gainers include Uniswap (UNI) and Aave (AAVE), which saw their token values increase by 43% and 22% respectively.
Monday’s turnaround has added over $400 billion in value to the total cryptocurrency market capitalization which now stands at $1.665 trillion from Sunday’s low of $1.239 trillion, representing a 34.32% gain in market capitalization.
The market seems to be recovering from the brutal week which saw a massive sell-off of over 50%. There are also some positive sentiments moving the market such as the CEO of Tesla and MicroStrategy announcing a bitcoin mining counsel which is intended to tackle environmental concerns related to bitcoin mining. Also, to note, billionaire investor, Ray Dalio, mentioned that he rather Bitcoin over bonds. Speaking on May 6 in an interview that was aired on Monday, May 24, the co-chairman and co-CIO of Bridgewater Associates describe Bitcoin as a superior instrument for saving than government or corporate bonds stating, “The more we create savings in [Bitcoin], the more you might say, ‘I’d rather have Bitcoin than the bond.’” The billionaire hedge fund manager admitted to holding Bitcoin in March after again predicting the U.S. may attempt to ban it. Dalio noted that the United States had attempted to prohibit U.S. citizens from owning or trading gold in the 1930s as it was seen to be a competitive threat to Treasury bonds.
