- CRO token made a bullish breakout this week as cryptocurrencies rallied.
- Cronos’s DeFi ecosystem has underperformed as competition rises.
CRO price rose sharply this week as investors react to the recent inflation data, Shapella upgrade, US retail sales, and Federal Reserve minutes. Cronos jumped to a high of $0.072, the highest level since March 20 of this year. Like other altcoins, CRO has jumped by more than 17% from the lowest level this year.
Cronos DeFi ecosystem lags
CRO, formerly known as Crypto.com, is a leading cryptocurrency that was created by Crypto.com, one of the leading exchanges in the world. Cronos is a blockchain project that has Ethereum Virtual Machine (EVM) capabilities. This means that it makes it possible for developers to build dApps in all industries like gaming and Decentralized Finance (DeFi).
At its peak, Cronos had one of the biggest DeFi ecosystems in the world. Its dApps had a total value locked (TVL) of over $4.4 billion. Some of these dApps include Tectonic, VVS Finance, Ferro, MM Finance, and Single Finance among others.
CRO price has underperformed its peers like Cardano and Solana for two main reasons. First, its DeFi ecosystem seems to be underperforming. Its TVL has dropped to about $364 million. In CRO terms, the TVL stands at C$5.4 billion, which is lower than its all-time high of over C$10 million.
At the same time, the activity of these DeFi platforms has been skewed towards VVS Finance, which has a dominance of 50%. Most of its platforms have little going on. This is likely because of the fast growth of DEXEs and lending platforms like Woo Network, GMX, and dYdX.
Cronos is seeing some traction in industries like gaming and the metaverse. For example, one of the top new of the week was that Atlantis launched the testnet of its play to earn game in the ecosystem
The other likely reason why CRO price has lagged is that the smart contract chains industry has grown rapidly in the past few months. Some of the fastest-growing platforms are Arbitrum, Optimism, and Cardano.
Finally, there have been concerns about tokens affiliated with crypto exchanges after the collapse of FTX. However, Crypto.com has proven to be a solid exchange that survived last year’s meltdown.
CRO price prediction
The 4H chart shows that the CRO price has been in a tight range since March this year. In this period, the token remained inside the narrow channel whose support and resistance levels are ar $0.066 and $0.070.
The token managed to move above the upper side of the resistance point this week. As it rose, it moved above the 25-period and 50-period moving averages. It has moved between the 23.6% and 38.2% Fibonacci Retracement level.
Therefore, there is a likelihood that the Cronos price will continue rising as buyers target the next key resistance point at $0.08, which is ~15% above the current level.
