The massive rise of the Decentralized Finance (DeFi) sector has contributed to the relegation of protocol tokens like Tezos.
Protocol tokens were the hot cake of the digital assets market as it promised investors massive returns due to its rewards every month. As a result of that, Tezos stole the headlines as it was one of the tokens that registered enormous price moves much to the admiration of investors.
Even with the fact that the token enjoyed success from the end of last year into the beginning of this year, the emergence of DeFi has somewhat reduced protocol tokens to dust in its wake.
Investors are swarming around DeFi while leaving protocol tokens like Tezos in the mud
One of the major reasons is that protocol tokens like Tezos promised about 5% profits coupled with annual yields. Still, DeFi came into the market with yield farming which promises nothing less than 100% profit coupled with yearly returns.
An expert was quick to point out that the reason why Tezos has gone downhill was because of the small amount of profit it presented to the one DeFi promised. Even though some of the projects have not been convincing on the long run, the increasing popularity that the project has gotten is still growing.
Tezos uptrend showing weak signs
After a massive price increase at the start of the month, Tezos upward trend has shown signs that it would crash anytime soon. The digital asset which now trades at $3.55 saw its price move from around $5 to register a low of $3.50 before the price correction.
Despite a monthly run of loss, the coin is still moving up from the year low of $1.25 as a result of the strength it showed when it moved from $0.79 around October last year to $3.60 in February this year.
Experts have refuted claims that Tezos cannot be tagged Chainlinks slow cousin because Tezos is a protocol token while Chainlink is an oracle token.