As AZCoin News mentioned so many times in recent times, DeFi tokens in recent times have made the cryptocurrency market nearly explode. Surprisingly, however, there was no Compound (COMP) in the top 3 Altcoin DeFi, instead of REN, LEND, and KNC. This is a conclusion based on the time spent observing activities on the chain, the supply, the price, and the number of users, and the value accumulated.
Why did 3 Altcoin DeFi REN, LEND, and KNC thrive over the past few months?
First, we must mention the first, simplest factor, which is closely related to price, which is supply. All three Altcoins have experienced a similar drop-off in the available supply located in known centralized exchange wallets. In the past 30 days alone, a total of 179 million REN has been withdrawn from exchanges (-8.5% drop). In the same time frame, LEND’s supply on exchanges has dropped by -5.1%, while the amount of KNC on exchanges was reduced by -93%.
Then, the second factor to consider is network growth with the number of new addresses created on their networks. Looking at the three charts below, you can see that in July 2020, the average daily network growth by the month of REN, LEND, and KNC grew strongly again this month.
Source: Santiment
Moreover, the average amount of daily addresses interacting with REN in July so far has been 588, up to + 36% from June, + 181% from May, and + 332% from April.
Source: Santiment
Finally, the most significant number of holders is accumulating REN, LEND, and KNC, as well as the number of retail holders, who have also experienced strong growth during the rally.
The report from Crypto Research Newsletter stated:
“In the past 30 days, the balance of top 100 KNC whales has grown by a total of 30.6 million KNC (~$48.1 million at the time of writing). In the same time frame, the top 100 LEND whales accumulated an additional 39.6 million LEND (~$10.1 million at the time of writing) to their collective bags, while the top 100 REN whales added 5.3 million REN (~$850,000 at the time of writing) more to their holdings.”
Elsewhere, since the start of the month, the number of addresses holding more than 1000 REN (~$150 at the time of writing) has increased by 550, the number of addresses holding more than 1000 LEND (~$250 at the time of writing) has increased by 817, while the number of addresses holding more than 100 KNC (~$157 at the time of writing) has grown by an additional 150.
The number of addresses holding more than 1000 REN, year to date | Source: Santiment
Both retail and large holders (on average) appear content with sitting on their bags, applying relatively little sell pressure for the time being. With all exhibited signs of accumulation in the past 30 days, pointing to high investor confidence and HODLer loyalty for three DeFi tokens including REN, LEND, and KNC.
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