This is Why DeFi Tokens Such as ALPHA Are Thriving
Scroll DownAfter a few weeks of bearish uncertainty in the cryptocurrency markets, Bitcoin has finally found some sort of footing thanks to traders who have not lost hope. Ethereum has also been able to mount an interesting recovery, although these short spikes do not actually amount to a full-blown rally. In other words, the most valuable digital currency tokens are trading on technical analysis and speculation, but what about decentralized finance (DeFi) tokens?
To be clear, Ethereum (ETH) and Bitcoin Cash (BCH) are currently among the top 5 coins based on market cap, but the real action is happening in the ecosystem of blockchain infrastructure tokens. This is where projects in the public sector and decentralized applications take the lead. A few DeFi projects have been trending and gaining based on fundamental news developments, and one of them we should be paying attention to is the one launched by Alpha Finance Labs.
Over the last four days, the ALPHA token has rallied by more than 110%. Similar to other DeFi projects, ALPHA is constantly improving, and its core development team recently upgraded its main protocol, hence the bullish rally.
DeFi represents the future of banking and finance, but the underlying blockchain technology is still in its infancy. The decentralized nature of the blockchain and the distributed networks that make up the Ethereum ecosystem makes it possible for developers to deploy new technologies, allowing the future of finance to be created by the public rather than by the few.
Ethereum has a very robust set of native programming languages and applications, but one of the most commonly used ones is ERC20. ERC20 is a standard protocol that any token can be built on top of, meaning that even tokens that are not based on the Ethereum blockchain can use this standard to interact with the network.
Since Ethereum tokens can be decentralized with ERC20 compatibility, DeFi protocols have become more popular than ever. DeFi applications are not just designed to facilitate the issuance of new currencies, however, but are also designed to provide decentralized financial services to the users of platforms such as ALPHA.
DeFi applications are the bridge between the traditional world of centralized services, where users receive services through centralized institutions, and the new decentralized future of finance, which is facilitated through decentralized networks.
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