DeFi platform Balancer has started distributing its native BAL governance token on the Ethereum MainNet. The token has increased in value more than 235% a few hours following the launch, putting Balancer among the leaders in the pack.
Balancer Labs announced on June 23, 2020, that its automated portfolio management tool experienced a price hike less than twelve hours following the launch. According to the statement, the price jumped from $6.65 to $22.28 before stabilizing at $15.60 24 hours later, moving over 6 million BAL tokens during the same period. BAL becomes the second governance token offered by a Decentralized Finance (DeFi) App to be valued by users following on the heels of Compound’s COMP token.
A Decentralized Trustless Future
Balancer’s token pool providers have for the last three weeks earning BAL even though none of the tokens were distributed. DeFi Pulse reports the token’s total value locked (TVL) jumped from $15.9 million on May 31 to $43.6 million today. Due to the good tidings, Balancer Labs CEO Fernando Martinelli stated:
“By far, the most important factor or reason why we are doing that is because we want this thing to be decentralized. We believe in a decentralized, trustless future, and we want Balancer to do that. We need the distribution to be in a healthy way.”
There has been a beehive of activities in the DeFi scene for the last few weeks. This follows the excitement created by the successful distribution of Compound’s governance token. During this time, Decentralized Finance (DeFi) tokens from Balancer, Ben, Aave, and SwissBorg have all made huge gains. Most of them having more than tripled in value this week.
Considerable Excitement in DeFi Scene
Data from CoinMarketCap shows that altcoins like Aave (LEND), Ren (REN), and Synthetix (SNX) have all gained some traction this week. For instance, LEND from leading London-based DeFi platform Aave rose 3,900% after trading under $0.01 from November 2018 onwards.
The token first hit $0.05 in May, before reaching $0.16 on June 21. On the other hand, Synthetix’ offered REN experienced its highest rally ever this week after ascending by 40% before continuing its bullish trend of a 100% increase over the last 30 days to reach an ATH of $1.61.
SwissBorg is also at its all-time highs, currently trading at $0.14. The Decentralized Wealth management firm’s CHSB token reached a new all-time high of just over $0.16 on June 17. The token’s price has hovered around $0.02 for much of 2020.
The introduction of the ‘yield farming’ concept has created considerable excitement in the DeFi scene. Forbes magazine announced the concept has the potential to give a 100% annual return on investment. These tokens are running on Ethereum’s MainNet, and the anticipated launch of Ethereum 2.0 later in the year can only bring good tidings for ‘DeFi farmers.’