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Bitcoin Price Rise Triggers Counterfeit Coins Growth in DeFi Agreements

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According to a report released by Cointelgraph, as the price of Bitcoin began to rise at the beginning of 2023, some counterfeit coins experienced more than 10…

Bitcoin Price Rise Triggers Counterfeit Coins Growth in DeFi Agreements

According to a report released by Cointelgraph, as the price of Bitcoin began to rise at the beginning of 2023, some counterfeit coins experienced more than 100% monthly growth, and the total lock-in value (TVL) of the DeFi agreement increased by US $10 billion year-to-date. Analysts said that this was caused by the extreme dominance of negative sentiment and the oversaturation of short positions at the end of 2022. However, the agreement based on Solana Friktion still announced that it would stop deposits due to “the difficult market of DeFi in the next few months”, which indicates that there may be further withdrawal in the near future.

Report: The total lock-up value of DeFi agreement has increased by US $10 billion since the beginning of the year

Interpretation of the news:


The report released by Cointelgraph reveals that the rise in the price of Bitcoin at the beginning of 2023 has triggered more than 100% monthly growth of counterfeit coins, which has led to an increase in the total lock-in value (TVL) of DeFi agreements by US $10 billion year-to-date. However, the announcement by the Solana Friktion agreement to stop deposits due to the difficult market of DeFi in the next few months suggests that there could be further withdrawal in the near future.

The analysts attribute the growth of counterfeit coins to the extreme dominance of negative sentiment and the oversaturation of short positions at the end of 2022. This indicates that the rise in the price of Bitcoin has forced some investors to seek new investment opportunities, resulting in more investments in DeFi agreements as an alternative means of earning profits.

However, the announcement by the Solana Friktion agreement to stop deposits highlights the challenges faced by the DeFi market. The difficult market may be due to increased competition, changes in regulations, or the unstable nature of cryptocurrencies. This suggests that investors should exercise caution when investing in DeFi agreements, as they may not always be reliable sources of returns.

In conclusion, the rise in the price of Bitcoin has led to more investment in DeFi agreements and an increase in counterfeit coins. While this trend may appear promising at first, investors should be aware that there are risks associated with DeFi agreements, as evidenced by the announcement by Solana Friktion. Therefore, it is important to conduct thorough due diligence before investing in any DeFi agreement to avoid losses.

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