Band Protocol price has tilted upwards as the decentralized finance (DeFi) industry rebounds. Its token, BAND, rose to a high of $1.7180, which was about 45% above the lowest level in 2022. Its total market cap has risen to over $71 million, making it the 345th biggest coin in the world.
Why is Band Protocol rising?
Band Protocol is a blockchain project that operates in the smart oracle industry. It is mostly used by developers who are building decentralized finance protocols.
Like Chainlink, it is used to provide data in the off-chain market to the on-chain. For example, a builder creating an app to trade stocks can use Band to get this data in an easy way.
Band Protocol is used widely. For example, it is used to provide off-chain cryptocurrency data to platforms like Loopring, Kyber Network, and Cream Finance. Other platforms that use Band Protocol are Homora, Injective, and dForce among others.
Band Protocol is the fifth oracle provider in the industry. Chainlink is the biggest player in the sector followed by Maker, WinkLink, and Pyth. Other notable players in the oracle industry are TWAP, Internal, DIA, and Flux.
Like other providers in the industry, BAND price has struggled in the past few months because of the weak performance of the DeFi industry. Indeed, the total value locked (TVL) in the sector crashed from over $250 billion to less than $70 billion. This crash happened after the meltdown of the Terra ecosystem.
Now, Band Protocol price is rising as investors react to the rebound of the sector. For example, the TVL has risen to over $90 billion. Its total value secured (TVS) has risen to over $539 million.
Many investors believe that the sector recently went through a stress test as volume disappeared. Most of these platforms have survived this test while centralized companies struggled.
Band Protocol price prediction
The four-hour chart shows that the BAND price has been in a strong slow bullish trend in 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 moved slightly above the 25-day and 50-day moving averages while the MACD has moved above the neutral point.
Therefore, there is a likelihood that the coin will continue rising as investors target the next key resistance at $2. A drop below the support at $1.5630 will invalidate the bullish view.