The Balancer (BAL) price rises to a new all-time high: What is driving the rally?


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BAL, the native cryptocurrency of Balancer – a popular automated market maker (AMM) used by many DeFi (Decentral Finance) users to trade cryptocurrencies – hit new record highs of over USD 70 on April 15th.

BAL / USDT 1-day price chart (Binance). Source: TradingView

There are two main reasons for BAL’s uptrend, namely the craze for Coinbase’s public listing and the resurgence of DeFi blue chips.

What is the Coinbase and Balancer hype?

On April 14, Adam Cochran, a partner at Cinneamhain Ventures, said he believed BAL would likely be one of the main beneficiaries of Coinbase listing.

Cochran said:

“My theory is that most of Coinbase’s new millionaires will be buying back heavily in crypto in the next 72 hours. While I think most CB assets will burst, there is one asset that I think will be in the next Month of CB is going to come out, and that’s $ BAL. ”

The theory is based on a survey he conducted among Coinbase employees worldwide to achieve public listing.

According to Cochran, he received 108 responses from Coinbase employees about what assets they are expected to buy in the next month.

Cochran said that outside of the big blue chip assets, BAL was the main pick among employees.

He wrote:

“I received 108 responses from employees around the world asking them questions about their personal views on crypto. The main question was what assets they would buy in the next 30 days. This graph shows us a couple of interesting things, but I want to zoom in. The chart is sorted by market cap, and you’ll find at the very end that in between low-cap projects is $ BAL. It’s by far the lowest market cap of any mainstream, labor, and blue-chip product. “

Some questioned the focus on balancers in the Twitter thread, as important cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Uniswaps UNI and Compounds COM had a much higher level of interest among the surveyed employees.

Regardless of this, Balancer recorded a significantly higher interest in buying the mid-cap DeFi tokens from employees.

Coinbase employee survey. Source: Adam Cochran

Investors are generally optimistic about BAL

Lex Moskovski, Moskovski Capital’s chief investment officer, said BAL could benefit significantly from Coinbase’s listing.

Moskovski went into Cochran’s theory and emphasized three important points that could further strengthen his dynamism. He explained:

“BAL can benefit greatly from this. To add to Adam’s point: – They also have a BAL pool in the chain that makes it easy to build positions in size. – As a previously active community member, I can argue that the team is a excellent BAL’s initial public offering is going to bring. “

On April 15, Balancer also announced a partnership with Gauntlet to maximize returns from liquidity providers through dynamic trading fees.

Additionally, Cointelegraph Markets Pro’s VORTECS ™ data on April 14 identified an optimistic outlook for BAL 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, the VORTECS ™ Score turned green just before April 15th, when the price of BAL began to recover. Within 10 hours, the price for BAL rose to a new record high.

The combination of the excitement about the survey data, the BAL pricing techniques for entering pricing, and the Gauntlet partnership were likely the main drivers behind the rally.