Share:
  • Ethereum price trading at $1,850 is eyeing $2,000 as its next target, provided it can flip $1,900 into a support floor.
  • Binance Smart Chain surpassed Ethereum in daily volume, registering $2.1 billion on May 22.
  • DEXes domination is still threatened by Liquid Staking protocols, which have closed the gap by 40% in the span of a month.

Over the last few days, Decentralised Finance (DeFi) chains have observed a growth in their Decentralised Exchange (DEX) protocols. This category of Dapps seems to be making a comeback. However, the threat to its dominance still looms in the form of staking protocols.

Ethereum was surpassed by Binance

Binance Smart Chain (BSC) stepped over Ethereum in terms of 24-hour volume on May 23, with BSC noting $2.1 billion in volume, while the biggest Defi chain only registered $780 million. The biggest proponent for BSC turned out to be PancakeSwap. The DEX contributes to nearly half of the total value locked (TVL) on BSC with a value of $2.52 billion, noting a 14.5% increase in the past 24 hours.

DeFi chains’ 24-hour volume

DeFi chains’ 24-hour volume

But PancakeSwap was not the only DEX to note such a growth as another such exchange on Ethereum also marked a similar growth. Uniswap observed a 42% increase in the last day, although its TVL noted no significant change at $4.1 billion. Furthermore, despite contributing to the chain significantly, Ethereum’s trading volume stood at a low as the growth was undercut by losses from other protocols. 

DEX protocols’ 24 hour change

DEX protocols’ 24 hour change

Decentralized Exchanges have noted much higher transaction volumes this month due to Centralised Exchanges (CEXes) losing volume. While in the previous month, CEX observed about $600 million in total traded volume, month to date, May has noted only $320 million.

However, despite the stellar growth of DEXes, their domination in the DeFi market continues to be threatened by Liquid Staking protocols. The latter has closed in on DEXes in order to topple it from its top spot.

In the span of a month, the difference between these two categories of protocols has reduced by 40% from $5 billion to $3 billion. At the time of writing, Liquid Staking protocols’ TVL came up to $17.9 billion, whereas DEXes TVL still stands at $20.8 billion.

DeFi market TVL distribution

DeFi market TVL distribution

Thus DEXes might need to see some more interest from users in order to keep its dominance unchallenged in the DeFi market.

Ethereum price continues rising

Ethereum price, unbothered by BSC surpassing in terms of daily volume, noted an almost 2% rise on May 22, rising to trade at $1,850. The green candlestick came after nearly two weeks of consolidation, but investors have not lost their expectations of a rise to $2,000 soon.

However, in order to make it to $2,000, ETH would first need to flip the $1,900 mark into a support floor. Coinciding with the 38.2% Fibonacci retracement of the downleg between $2,142 and $1,737, the altcoin needs to note another 2% rise to achieve the same.

This would also turn the 50-day Exponential Moving Average (EMA) into a support level, further preventing any severe decline in price. If Ethereum price breaks out and rallies beyond $1,900, it will face some resistance at the 50% Fib level at $1,940.

ETH/USD 1-day chart

ETH/USD 1-day chart

Once this level is turned into a support level, too, the next target for Ethereum price would be $2,000. Reaching this would effectively undo the losses observed throughout the month caused by the 10% crash of early May.

Nevertheless, investors should also be prepared for the price to turn around and decline in case bearishness comes back, which could bring ETH back to $1,800.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Crypto market cowers with sell signals after FOMC minutes

Crypto market cowers with sell signals after FOMC minutes

Bitcoin price could make a 5% trip south to the $48,000 psychological level. Ethereum price likely to revisit $2,770, a 5% fall with a sell signal already in play. Ripple price eyes a 7% fall amid growing overhead pressure.

More Cryptocurrencies News

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price dips 25% as WLD holders cash in on faded AI narrative

Worldcoin price is down 23% since the Monday peak of $7.9960. WLD could extend the fall 9% to the key Fibonacci retracement level, 61.8% at $5.7330. Invalidation of the bearish thesis will occur if the AI token clears the range high to create a new local top.

More Worldcoin News

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price could drop 7%, but MicroStrategy nearly merits S&P 500 inclusion

Bitcoin price has managed to climb a commendable distance since October, with the move benefitting MicroStrategy the most, among other investors. The company, having demonstrated strong support for BTC through successive purchases, could soon merit S&P 500 inclusion as it steadily checks the boxes for listing criteria. 

More Bitcoin News

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET: 15% drop likely for AGIX as multiple on-chain metrics flash bearish

SingularityNET price has dropped almost 12% since rejection from the peak of the market range at the $0.6000 psychological level. AGIX could extend the fall nearly 15% before providing a buying opportunity for late and sidelined investors. A higher high above $0.5999 would invalidate the bearish thesis.

More SingularityNET News

Bitcoin: BTC eyes $60,000 but correction looms

Bitcoin: BTC eyes $60,000 but correction looms

BTC has been moving up only since January 22 but could slip into a consolidation before the next leg up. With the rate at which BTC is climbing after the ETF approval, coupled with strong fundamentals, investors should consider buying the dips before BTC hits $60,000.

Read full analysis

BTC

ETH

XRP