Band Protocol (BAND) has been one of the hottest tokens in the DeFi sector throughout the past couple of months.
The token is currently trading up nearly 600 percent over the past three months, with the vast majority of these gains being incurred in recent weeks.
After setting fresh all-time highs just a week ago, the token is currently pushing higher once again, with buyers now looking to set fresh highs as it attempts to surmount its $5.00 resistance level.
As for what could be backing this immense uptrend, there are a few crucial factors to consider.
These factors all point to underlying strength, but its near-term performance likely remains dependent on how the aggregated DeFi sector trends.
BAND explodes towards $5.00 as uptrend shows few signs of weakness
At the time of writing, BAND is trading up over 26 percent at its current price of $4.97.
This marks a notable recovery from its multi-day low of $3.60 that was set after it faced a harsh rejection at its current all-time high of $5.20.
It does appear that buyers are looking to revisit these highs in the near-term.
One event that could be driving this latest leg up is news of a partnership with ICON – a decentralized blockchain network.
The network will be integrating Band Protocol’s oracle network for numerous DApps within the ecosystem.
An announcement of the partnership reads:
“ICON Network, one of the largest decentralized blockchain networks, has strategically partnered and chosen Band Protocol to provide secure and verified data oracles for its rapidly growing decentralized application ecosystem.”
For an oracle network, integrations are key to growth. As such, investors will likely be closely scrutinizing how many integrations Band Protocol can secure going forward.
Band Protocol sees sharp rise in active address count as new investors flood in
News of the ICON integration is just one factor that may be driving the BAND token’s ongoing uptrend.
The growth it has seen while looking towards its active address count also suggests that new investors are the ones backing its uptrend, rather than current investors accumulating.
Blockchain data visualizer IntoTheBlock reveals this trend, showing that BAND now averages roughly 700 active daily addresses per day.
This marks a notable climb from where this metric was at just one month ago when BAND averaged under 100 daily active addresses.
It is important to keep in mind that although transactions have been rising steadily alongside its price, the number of large transactions – defined as those with a value of over $100,000 – remains incredibly low.
This signals that retail investors are driving its growth, with most investing relatively small amounts of capital.
Band Protocol, currently ranked #86 by market cap, is up 8.44% over the past 24 hours. BAND has a market cap of $100.09M with a 24 hour volume of $34.22M.