The continued volatility in the price action of bitcoin (BTC) and other similar cryptocurrencies indicates a possible need for stablecoins and other less volatile digital currencies.
Fundamental Analysis: Altcoins Can Thrive
Bitcoin has been on a frenzy over the past year, however, its high volatility and the need for less volatile cryptocurrencies are once again being discussed by crypto enthusiasts.
The growing interest in Bitcoin and other cryptoassets among retail and institutional investors makes a perfect case for broader adoption of blockchain and crypto. However, as the number of investors interested in BTC continues to grow, so has the demand for less volatile and more sophisticated cryptoassets.
Growing demand means that the importance of these stablecoins is also increasing, especially when it comes to new blockchain applications. A closer look shows that DeFi applications and more centralized cryptocurrencies actually work much more closely together than it might seem at first glance.
DeFi is expected to deliver a number of affordances for financial accessibility and inclusion and it appears that stablecoins will play a significant role in achieving these goals.
Technical analysis: CHZ, CRV, TOMO price analysis
Chiliz (CHZ) price gained 17.3% yesterday to enter green territory after posting losses earlier this week. Curve DAO (CRV) price is another big beneficiary of the uptrend seen in some altcoins over the past couple of days.
The price has increased by almost 25% in the last two days to erase losses of over 18% recorded on Monday. Finally, the price of TomoChain (TOMO) has increased by over 11% today to reach the highest levels recorded in August. As can be seen on the chart, the price of TOMO has stopped at the 127.2% Fibonacci retracement at $1.42.
Summary
Interest in stablecoins and other low-volatility cryptoassets has grown recently as it appears these assets will play a significant role in the future of blockchain and decentralized finance (DeFi).
