25.2 C
New York

Top 10 Coins Maintain Static Actions, What Does it Signify?


Are the Investors more Focused on DeFi than Traditional Cryptos?

In the past couple of days, the crypto space has witnessed unusual conduct of the cryptos. Considering the price chart of the last seven days, the top 10 cryptocurrencies excluding Tether, have maintained still levels in the last 48 hours.

top 10 coins
Top 10 Coins Maintain Static Actions, What Does it Signify?

The top 10 cryptos are currently experiencing a dip similar to Bitcoin and also presume to be stagnant. One of the major reasons might be the shift of focus of the investors from the traditional cryptos to the DeFi’s Yield Farming.

As the DeFi space provides huge profits within no time(also relatively huge loss too), investors might have jumped into the DeFi space. This may have reduced the trade on the traditional cryptos like Bitcoin, Ethereum, etc.

Is Futures Trading Exceeding the Spot and Margin Trading?

A Future contract is an agreement to buy or sell an asset at a later date at a predetermined price. Here holding the asset is not required, only the trade carried out on the price of the asset. Therefore, the actual buy and sell of the asset does not carry out as in the spot and the margin trading.

Another use case of futures trading is that a trader is not required to maintain fiat currency or any stablecoin to carry out trade. Also, the trader has the freedom to increase or decrease his position during bank holidays or a cash restrainment period.

Also, the cryptocurrency miners get benefitted by reducing the cash flow uncertainties. However, there are many more use cases of futures trading. 

Collectively, the cryptos are currently trending in a very narrow range, almost presuming to be static without having a big fluctuation. Also, many traders and investors predict the September month is known for the dips that occurred almost every month. The coming month is expected to be a correction phase for most of the cryptocurrencies.

Source: https://coinpedia.org/news/top-10-coins-maintain-static-actions-what-does-it-signify/

Related articles


Recent articles