Cryptocurrency and blockchain expert Christopher Brookins commented in his new post, the biggest weekly drop Bitcoin has experienced since March; He also touched on the connection of Bitcoin with Tether (USDT) and the DeFi world. Brookins also explained with his own thoughts how the leader coin could stay above $ 10 thousand.
Commentator and analyst Christopher Brookins mentioned the decline of Bitcoin in his article published on Forbes. Stressing that despite the high losses, Bitcoin managed to stay above the $ 10 thousand threshold, Brookins thinks that the reason for this may be the interaction of BTC with fixedcoins and the extraordinary increase in Bitcoin transaction volume in line with the needs of the DeFi world.
Bitcoin Sets Volume Record
Blockchain research platform CryptoQuant underlined the record increase in Bitcoin volume in its research published the other day. Stating that Bitcoin has reached the highest transaction volume of the last 1 year, CryptoQuant stated that the fund flow ratio in all exchanges saw the lowest level of the year and that these transactions did not originate from the stock markets.
In addition, CryptoQuant underlined that these non-exchange-induced volume increases were also observed in 2019, and that OTC agreements could play a role in this increase. As we reported in our article in the morning, some analysts opposed this view. According to Brookins, if the scenario in 2019 is repeated, this may indicate that the increased BTC volume can attract new and powerful buyers to the market.
Fixedkoin, DeFi and Bitcoin Trio
The expert analyst said that there is an undeniable link between the price pegged to the dollar and the leading fixedcoin Tether (USDT) and Bitcoin, emphasizing that the positive correlation displayed has increased linearly since 2017. In line with this connection, Brookins also touched on the new developments on the Tether front last week. Tether announced it will release a USDT version for its Solana blockchain. USDT developers announced that they anticipate that Solana (SOL) will be able to process more than 50 thousand transactions per second, which will greatly reduce transaction fees.
Brookins argues that Tether is one of the lifebloods of DeFi and that a Solana-based USDT could greatly attract DeFi users against the ever-increasing Ethereum transaction fees. The analyst adds that if this scenario occurs, Bitcoin will definitely benefit.
According to Brookins, the high interest in the DeFi world results in users pledging more Bitcoins to access many opportunities such as yield farming through ERC-20 tokens. Mechanisms like RenBridge easily handle this Bitcoin collateralization process, allowing users to obtain an ERC-20 compatible version. In other words, the increasing interest in DeFi platforms with these channels can be interpreted in favor of Bitcoin.