The price of Band Protocol has tilted upwards as the decentralized financial (DeFi) industry recovers. The token, BAND, rose to a high of $1.7180, which was about 45% above its 2022 low. Its total market cap has risen to over $71 million, making it the 345th largest coin in the world.
Why is the Band Protocol rising?
Band Protocol is a blockchain project operating in the smart oracle industry. It is mostly used by developers building decentralized financial protocols.
Like Chainlink, it is used to provide data in the off-chain market to the on-chain. For example, a builder who creates an app to trade stocks can use Band to get this data in an easy way.
Band protocol is widely used. For example, it is used to provide off-chain cryptocurrency data to platforms such as Loopring, Kyber Network, and Cream Finance. Other platforms that use Band Protocol include Homora, Injective, and dForce.
Band Protocol is the fifth largest oracle provider in the industry. Chainlink is the largest player in the sector, followed by Maker, WinkLink and Pyth. Other notable players in the oracle industry include TWAP, Internal, DIA, and Flux.
Like other providers in the industry, BAND price has struggled in recent months due to the weak performance of the DeFi industry. Indeed, the total value locked-down (TVL) in the industry fell from over $250 billion to less than $70 billion. This crash happened after the collapse of the Terra ecosystem.
Now the price of the Band Protocol is rising as investors react to the sector’s recovery. For example, the TVL has risen to over $90 billion. Total Secured Value (TVS) has risen to over $539 million.
Many investors believe the sector recently passed a stress test as volume receded. Most of these platforms survived this test while centralized companies struggled.
Band Protocol price forecast
The four hour chart shows that BAND price has been in a strong slow bullish trend for the past few days. As a result, the coin has risen from the YTD low of $1.1870 to the current $1,7170. The coin has risen slightly above the 25 and 50 day moving averages, while the MACD has moved above neutral.
Therefore, there is a good chance that the coin will continue to rise as investors target the next key resistance at USD 2. A drop below the support at $1,5630 invalidates the bullish opinion.