A Tough Competition for Bitcoin’s Trading Value
In the middle of the whole crypto space speculating the Bitcoin price by this year-end or in the next year, some cryptos quietly managed to cross $10000. In fact, one among them (at the time of reporting) has surpassed Bitcoin too.
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The cryptos that could pose a threat to Bitcoin currently are Wrapped Bitcoin(WBTC) and yearn.finance(YFI). WBTC and YFI are the cryptos which are priced at $11,846.27 and $11,081.14 whereas Bitcoin’s price is $11,802.26 at the time of reporting.
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Bitcoin rallied over $12000 but unfortunately could not find any support to maintain above the mark and slipped down around $11800. Conversely, Wrapped Bitcoin(WBTC) and year.finance(YFI) are surging with soaring prices very close to BTC.
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WBTC, an ERC-20 token backed 1:1 by bitcoin and held at Bitgo Trust, brings the liquidity of Bitcoin to Ethereum trust.
According to the data on Coin metrics, the amount of WBTC mined in the last week is more than that of the BTC.
On the other hand, YFI is a governance token built to reward users who use the yearn.finance Defi protocol created by Andre Cronje. YFI token since its inception has soared from $32 to more than $11700 in just a month and is believed to continue with the surge.
The three key reasons for the massive jump is said to be the release of yInsure Finance, an increase in demand for Defi protocols that recently crossed $15 billion market cap and the hype created by some of the crypto bulls.
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In a nutshell, major competition is awaited for the largest cryptocurrency if WBTC and YFI keep soaring. However, the market cap which is dominated by BTC might be tough to challenge but if the total outstanding supply is considered, more than 99percent of YFI tokens have already been circulated and WBTC has a long way to go.
Despite these tokens look likely competing Bitcoin’s Trading Value, Bitcoin remained the king cryptocurrency in terms of market capitalization.
Having said that, will Bitcoin keep losing its dominance over these emerging coins or yet again it outperforms them and surges to touch $20000 or above? Let’s discuss over Twitter. Tag us @CoinpediaNews
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