Elrond took a big step this week and established itself as one of the frontrunners in the crypto industry. It should be noted that Elrond’s native token is not a crowd favorite despite having a DeFi chain.
Elrond enters Romania
After the Romanian central bank approved Elrond’s takeover of Twispay, investors waited for a rally as this was a milestone.
After announcing this decision in October 2021, Elrond secured approval from the National Bank of Romania. The primary objective of this acquisition is that through Elrond Twispay, which can operate throughout the EEA (European Union, Iceland, Liechtenstein and Norway), it will be able to process transactions significantly faster and cheaper.
BREAKING: The Romanian Central Bank clears the acquisition of e-money institution Twispay by Elrond.
— Beniamin Mincu 🔥🌓 (@beniaminmincu) March 10, 2022
This, of course, created an environment of optimistic expectations, and Elrond delivered.
As it is, EGLD has been gaining momentum since March 8 and is moving against the market trend. Over the past 48 hours, the uptrend has gained momentum and pushed EGLD further up. But whether or not it would hold up is another question, given the altcoin’s high correlation of 0.91 with Bitcoin.
Elrond recently broke the downtrend and maintained consolidation above $130. It also recently marked a 17.23% rally with bullish signals on the price indicators.
Bitcoin, on the other hand, spins in the opposite direction. Consolidated below $40k, the king’s coin failed to break through again, and with the price indicators suggesting more bearish, the breakout seems unlikely to happen any time soon.
A fall in the price of BTC can therefore also lead to a fall in the price of EGLD.
Plus, Elrond’s DeFi front hasn’t been the best catalyst either, as the chain has lost about $300 million in the past month alone. However, the Maiar DEX in the chain has seen a 121% increase in daily trading volumes to less than $15.7 million.
Anyway, since Elrond doesn’t have much to offer its investors right now, other than the Twispay acquisition, it will have to rely on Bitcoin not to mess up its trajectory.