The Waves price popped to a key resistance level as investors remained optimistic about the ecosystem. Waves jumped to a high of $34.71,which was about 66% above the lowest level in September. As a result, it’s total market capitalisation has jumped to more than $3.6 billion, making it the 47th biggest cryptocurrency in the world.
What is waves and why is it rising?
Waves is a blockchain project that is relatively similar to Ethereum in that it helps developers build decentralized applications. It was launched in 2016 and has seen some steady growth.
Data compiled by DeFi Llama shows that there are four DeFi platforms built on Waves technology. While this number is small compared to Ethereum, the total value locked (TVL) in the ecosystem is more than $2.4 billion. This makes it the 8th biggest platform after Ethereum, Binance, Solana, Terra, Avalanche, Fantom, and Polygon.
The Waves price is surging as the total value locked in Neutrino jumps. Neutrino is the biggest DeFi platform in its ecosystem with its TVL of more than $1.8 billion. This means it has a dominance of about 77%. It is followed by Vires Finance that has a TVL of $362 million.
Therefore, Waves faces a major risk in that one platform has a substantial dominance. For example, in Ethereum, Curve has a dominance of just 11%.
Another reason why Waves price has jumped is that more developers are turning to it for their NFTs solutions. They recently launched the collective firms and the clash of farms.
Waves price prediction
The four-hour chart shows that the Waves price has been in a major bullish trend in the past few days. The price has risen to the important resistance level at $34, which was the highest level since September 13th. The coin has risen above the 25-day and 50-day moving averages.
Another notable thing is that the coin seems to be forming a cup and handle pattern. In price action analysis, this pattern is usually a sign of a bullish continuation.
Therefore, I suspect that the coin will keep rising as bulls target the next key resistance level at $50. However, a short pullback will also be likely as it forms the handle section.