Elon Musk Endorses DeFi Cryptocurrencies With Latest Tweet

Tesla Inc TSLA CEO Elon Musk has tweeted about crypto once again, and his latest tweet is a positive endorsement to all DeFi related tokens.

What Happened: “Don’t defy DeFi,” Musk wrote on Twitter, inspiring confidence in many DeFi token holders after a market-wide sell-off saw most coins record large losses overnight.

Don’t defy DeFi

— Elon Musk (@elonmusk) March 25, 2021

According to CoinMarketCap, trading activity in DeFi tokens surged following Musk’s tweet, and the overall market cap across the sector grew by 0.43% to $79.49 billion.

Market proponents believed that his tweet would be bullish for Ethereum – the blockchain upon which most of DeFi or decentralized finance applications are built.

Why It Matters: Musk’s tweets about specific cryptocurrencies usually impact their subsequent short-term price movement. So far, the Tesla CEO has tweeted exclusively about Bitcoin and Dogecoin, and on each occasion, the cryptocurrencies have rallied considerably.

Musk’s most recent impact on the market, prior to his shout-out to DeFi, was yesterday when he announced that Tesla would now accept Bitcoin as payment.

The CEO said that Tesla operates its own Bitcoin nodes directly, and any Bitcoin paid to Tesla would be retained as Bitcoin and not converted to fiat currency.

Bitcoin surged from $54,000 to $56,500 following the news, however, it has since corrected down to $51,381 at the time of writing.

Image: Steve Jurvetson via WikiCommons