Balancer (BAL) hits all-time high as DeFi projects test new solutions

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Decentralized Finance (DeFi) was the driving force behind the growth of the cryptocurrency market in early 2021, but lately the sector has faded into the background of unverifiable tokens as famous artists and old auction houses jumped into the NFT ring.

Taking a break from the spotlight has allowed some of the more popular DeFi projects like Balancer (BAL) to regroup and plan the next steps for their protocols to create a more interoperable and user-friendly DeFi ecosystem.

Data from Cointelegraph Markets and TradingView show that Balancer (BAL) hit a low of $ 28.95 on February 23 after the market-wide correction that followed the initial $ 58,000 denial of Bitcoin (BTC). Since then, BAL has gained 122% to hit a new all-time high of $ 64.99 on March 18.

BAL / USDT 4 hour chart. Source: TradingView

Balancer has been able to stand out from the ongoing DeFi token slump thanks to multiple partnerships and protocol upgrades designed to address some of the biggest issues in decentralized funding, including high transaction costs on the Ethereum (ETH) network.

Balancer 2.0 inspires the DeFi community

The significant momentum for balancers began in late January when the Balancer Exchange protocol introduced gas reimbursements to reduce high transaction costs.

On February 2nd, the project started tweeting about Balancer 2.0 and the various features that should be included, such as a log vault, gas efficiency, and resilient oracles.

Balancer also announced a partnership with Aave (AAVE) to create the Balancer V2 Asset Manager, a liquidity pool and credit product for Hybrid Automated Market Makers (AMM).

VORTECS ™ data from Cointelegraph Markets Pro identified an optimistic outlook for BAL on March 12 ahead of the recent price hike.

The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS ™ Score (green) vs. BAL price. Source: Cointelegraph Markets Pro

As can be seen in the graph above, VORTECS ™ rose to a high of 69 on March 11th when the price of BAL fell, and another high of 73 on March 13th caused the price to hit a new all-time high broke out.

After the launch of the Aave AMM on March 16, the VORTECS ™ value for BAL soared to a high of 66 on March 17, two hours before the price began to rise by 63%.

Balancer’s rally to a new all-time high is clearly supported by the strong use case of its new offerings, and the project appears well-positioned to tackle the next wave of DeFi excitement as institutional and retail investors increase their exposure to the cryptocurrency market.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading step is associated with risks. You should do your own research when making a decision.