The price of Dash’s native token of the same name has skyrocketed in the last 2 days, evaluating traders’ entry into the booming “DeFi” area.
The decentralized autonomous firm has formed a partnership with StakeHound, a protocol that creates share tokens for users who want to access decentralized finance, according to an announcement Monday. The pair will allow DASH holders to stake their cryptocurrencies for a “wrapped” ERC20 cryptocurrency called stakedDASH.
Users will be able to trade stakedDASH through decentralized exchanges including UniSwap, Curve, Aave and others. At the same time, they will earn their DASH in the StakeHound pool for the stakeholder return, which will mean more stakedDASH rewards.
The proposal aims to remove the burden of depositing 1000 DASHs to create a revenue generating Masternode. StakeHound requests a minimum of 1 DASH to earn returns on stakedDASH. Mark Mason, marketing manager for the Dash project, said that with the partnership, both DASH and DeFi users will have access to each other’s markets.
DASH Price Rise
The news helped create an optimistic buying mood for DASH. The cryptocurrency was trading close to $ 67 on Monday but rose as high as $ 79.70 during the day. Apparently, traders took a quick look at this news. According to CoinMarketCap data, Dash was trading at $ 72.40 at the time of writing.
Meanwhile, the prospect of restoring returns on the tradable staked DASH token added the use case of so-called “yield farming”. Mason used the following statements on the subject:
“Dash provides an additional ramp for DeFi. This allows DeFi users to exchange DeFi tokens for Dash and spend and use those tokens in the real world. ”
DASH Technical View
DASH’s most recent rise helped it move above a short-term downtrend line. The strong upward move allowed the cryptocurrency to raise its bullish target to $ 87. Meanwhile, a renewed selling pressure near local or widened highs could push the DASH / USD exchange rate downside towards the Descending Trend Line, which will now act as a support. Even then, the pair could attempt a recovery at $ 65, a support level. If the downward movement continues, DASH could decline to $ 60.