On January 11, Bitcoin saw a steep correction as it dropped to around $30,500. But DeFi tokens, including Synthetix, Maker, and Compound outperformed the majority of the market with the primary reasons for it being strong fundamentals and improving market sentiment.
The market sentiment around DeFi has been generally positive and the release of highly anticipated roadmaps, such as that of Synthetix, further amplified the positivity around the DeFi market.
On January 12 Synthetic announced that it is transitioning to Optimistic Ethereum, a layer two scaling solution that allows users to transact and process smart contracts without encountering the scalability challenges that plague the Etheruem network.
When the Ethereum blockchain network becomes clogged, traders are forced to pay over $100 to $200 to process complex transactions. On layer two networks like Optimistic Ethereum, it is possible to offset these scaling issues.
The U.S. Comptroller of the Currency released an op-ed in the Financial Times discussing the potential to grant DeFi protocols banking charters. DeFi giants Synthetix, Maker, and Compound rallied strongly as the price of Bitcoin recovered.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.