Decentralised Finance (DeFi) has taken the cryptocurrency industry by storm in 2020, with well-known projects like Compound and Yearn Finance experiencing tremendous surges in interest. But lower market-cap projects like Hydro Protocol, which trades under the ticker $HOT, are beginning to gain momentum.
Hydro Protocol provides DeFi developers with a tool to create decentralised exchanges in “minutes” using the Hydro SDK.
This is potentially vital for the DeFi ecosystem as it creates the building blocks for continued innovation as investment continues to pour in.
It claims that bridge liquidity from centralised exchanges to a decentralised environment in the case that larger exchanges want to start building a decentralised platform, while also offering multi-chain compatibility.
The company’s token, HOT, has exploded in terms of interest and trade volume over the past 24-hours after being listed on popular cryptocurrency exchange Huobi.
Despite having a fully diluted market cap of just $17 million, more than $4 million has been traded since Huobi’s listing as traders flock to the latest DeFi protocol.
It is also, like all Ethereum-based DeFi tokens, also listed on Uniswap which has become a familiar stomping ground for traders seeking out up-and-coming tokens.
While Hydro Protocol’s rise in popularity has only started to happen this year, it has been operating since early 2018 when its token reached an all-time high of $0.2826.
At the time of writing HOT is trading at $0.0108 after a minor correction from $0.0138, which was the highest point its traded at for more than two years as it targets a bullish reversal alongside the rise in interest around DeFi protocols.
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Disclaimer: Not investment advice.