BENQI has once again emerged as the flagship DeFi protocol in the Avalanche (AVAX) ecosystem. Due to multiple fundamental and technical confluences, QI crypto is looking very bullish. Consequently, a 300% upside is on the cards now due to an unprecedented increase in trading volume.
Benqi is a liquidity protocol on Avalanche blockchain that allows the trustless borrowing and lending of digital assets on the network. According to DeFi Llama, there has been an enormous growth in total locked value (TVL) in the decentralized finance (DeFi) protocols on Avalanche in the last few weeks.
Out of the $915 million TVL on AVAX, $573 million is currently locked in BENQI, which makes it the biggest dapp on the smart contract platform. This TVL increase shows an increase in adoption which in turn is fueling the price action on QI coin.
At the time of writing, Avalanche is the sixth biggest blockchain in terms of TVL which shows that there is a lot of network activity. This is one of the main drivers of the ongoing bullish BENQI price action, which has pushed the coin to its highest level since May 2022.
BENQI Price Analysis & Technical Outlook
If we analyze the QI/USDT chart on the daily timeframe, there appears to be more upside for the altcoin. There is a weekly imbalance which is also known as a fair value gap around $0.0388 which might get filled in the coming days. Such imbalances attract the price toward them like a magnet.
However, this bullish Benqi price prediction will stand invalidated in case the price drops below $0.0275 which is a lower timeframe support.
If we consider the monthly chart, then there is also a possibility of a bullish leg toward $0.01, where lies another fair value gap on the monthly timeframe.