- Cronos crypto bounced back on Monday as demand for the coin rose.
- Cronos DeFi TVL has dropped to $380 million and remained steady in CRO terms.
Cronos price bounced back on Monday morning, becoming one of the best-performing coins in the industry. CRO jumped to a high of $0.054, the highest point since August 17th. Other top-performing coins were Conflux, XDC Network, and Filecoin.
Cronos DeFi TVL stable
Cronos is a blockchain project that was established by Crypto.com, a leading crypto exchange. It is an EVM-compatible network that was built using the Cosnos SDK, which ensures its interoperability with other chains.
Cronos competes with the likes of Ethereum, Solana, Polkadot, and Aptos in industries like Decentralized Finance (DeFi), gaming, and non-fungible tokens (NFT). Developers love it for its lower transaction costs, faster speeds, and interoperability.
It is unclear why CRO price jumped on Monday. A likely reason is that investors are anticipating some important Cronos news this week. Another possible reason is that they are just buying the dip since the coin has dropped by double digits in the past few months.
Meanwhile, Cronos DeFi ecosystem has been muted lately. Data compiled by DeFi Llama shows that Cronos has a total value locked (TVL) of $384 million. At its peak, it had over $4.4 billion worth of assets in its ecosystem.
In CRO terms, the DeFi TVL has held steady at 7.35 billion, where it has been in the past few days. This amount is higher than the year-to-date low of 6.5 billion CRO. The biggest players in its ecosystem are Tectonic, VVS Finance, Ferro, and MM Finance among others.
The challenge for these platforms is that they are facing substantial competition from the relatively mainstream Ethereum projects. For example, Tectonic, a lending protocol competes with the higher liquid AAVE and Maker. VVS FInance and Ferro, on the other hand, compete with the likes of Uniswap and GMX.
Cronos price prediction
The 4H chart shows that the CRO price crashed to the key support level at $0.050 on August 18th. It then retested this price on August 23rd as cryptocurrencies retreated. Now, it has bounced back in a low-volume environment and crossed the crucial 25-period and 50-period moving averages.
It is also attempting to retest the important resistance level at $0.054, the lowest point on June 28th. Also, it crossed the crucial level at $0.052, the highest level on August 21st. Therefore, I believe that these Cronos gains will be short-lived, which will see the token retreat to the support at $0.050.
