What is Rari (RGT) crypto and why is it up 100% today?

If anyone believes that Bitcoin (BTC) is the bellwether of the wider cryptoverse, things might not be so. Altcoins can rise or fall, with no correlation to the price movement of BTC. A similar event is underway in the crypto market right now.

While the GARI token of GARI Network DAO is declining sharply at the moment, another altcoin, RGT or Rari Governance Token is on the rise. The GARI token’s fall is being attributed by some to the claims around its hacking. To manage the situation, GARI Network DAO has denied any hack claims through a tweet.

But why is RGT, usually referred to as Rari crypto, rising? Let us explore.

What is Rari crypto?

The Rari ecosystem’s primary service is the lending and borrowing of cryptocurrencies. Rari Capital, a decentralised protocol, claims it provides deposit services to users, which can help earn yields. It also states the services are automated that lead to the “highest yield” for the crypto depositor.

Build using the blockchain of the second-largest cryptocurrency, Ethereum, Rari Capital is partly comparable to other DeFi protocols that promise yield farming. The depositor can stake holding, which can earn interest. The borrower of the pool contributes by paying interest, which is passed on to the depositor. While some service providers like Celsius Network are said to be centralised, Rari Capital uses the native RGT token to decentralise its governance.

It is notable that a similar service provider, Vauld, has lately suspended withdrawals citing “volatile” market conditions.

Also read: What is Chingari (GARI) crypto and why is it down 70% today?

RGT token

CoinMarketCap suggests that RGT is listed on Coinbase, Gate.io, and a few other crypto trading platforms. The market cap, as of writing, is nearly US$110 million, which places the RGT token in the top 200 altcoins by market cap.

The price and 24-hour trading volume are up nearly 100% and 5,000%, respectively.

Data provided by CoinMarketCap.com

Why is Rari crypto rising?

The probable reason behind the rise in the value of the RGT token is the simultaneous fall of another major crypto deposit platform, Vauld. Vauld is a centralised platform, which does not have a native token that can decentralise its governance. In contrast to this, Rari crypto boasts decentralised governance. It might be assumed that Rari Capital would not suddenly halt its operations like Vauld and Celsius.

Bottom line

The RGT token is on a rise right now, and one of the reasons could be its decentralised underpinning. Centralised platforms like Vauld, which has recently suspended withdrawals, are facing the heat of investors. Over the past few hours of trading, Rari crypto, probably driven by this sentiment, has doubled its value.

Also read: Everything you need to know about Vauld suspending withdrawals

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