After bottoming out at around $2.19, a nascent and obscure DeFi token called BarnBridge (BOND) price has surged by 800% to reach $20 on July 26.
To put things into perspective, leading coins such as Bitcoin (BTC) and Ether (ETH) only rebounded by 18% and 54% respectively in the same period.
The cross-chain risk management protocol, BarnBridge, allows investors to hedge against interest rate fluctuations and price volatility by offering a suite of composable decentralized finance products.
One of the products in the suite is the SMART Yield, which enables investors to secure fixed rate yields from the debt pools of other projects. Another example is SMART Exposure, which provides a set of tools that help rebalance investors’ portfolios.
As for BarnBridge’s latest product, SMART Alpha, investors are able to hedge against price fluctuations and gain leverage for bullish theses. For now, BarnBridge is using BOND as a governance token.
On paper, the recent price pump of BOND should mirror the fast-growing interest in risk-trenching protocols, mainly when several of DeFi sector projects met their failure. However, if one were to focus on the token’s trading volume concentration, it appears that its gains are largely speculative.
CoinMarketCap’s data shows that, in the past 24 hours, more than 50% of BOND volumes are from Binance. Concurrently, the daily trading activity of the BOND/USD pair has been falling during the price pump.
It has been suggested that fewer investors have been responsible for the BOND price pump, which improves the possibility of a sharp correction in the near future.
