Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: RSRS on July 28, 2021, 07:49:54 AM
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Decentralized finance (DeFi) was one of the main factors that pushed the crypto market higher throughout 2021 and to date, platforms like Uniswap (UNI), SushiSwap (SUSHI) and Aave (AAVE) form the bedrock of the sector.
Similar to altcoins, DeFi tokens took a severe beating as Bitcoin price corrected from its $65,800 all-time high, and data from Cointelegraph Markets Pro and TradingView shows that since DeFi index perpetual futures contract hit a low of $5,340 on July 20. Since then, the value of the index has rallied by 45% to $7,682 and this has analysts watching to see if a reversal is in order.
DeFi index perpetual futures contract 1-day chart. Source: TradingView
Total value locked reverses course
In DeFi, the total value locked (TVL) is a platform or the sector as a whole is used to determine the strength and weakness across all platforms.
Total value locked in DeFi. Source: DeFi Llama
While this metric is still down roughly 30% from its all-time high of $154.91 billion, the metric did increase from $3 billion in July 2020 to $111.04 billion by July 2021.
Out of the top 20 DeFi platforms, the largest percentage growth in TVL over the past seven days was a 68% increase on the Flexa (AMP) protocol and a 38% increase on Lido (LDO).
DeFi tokens rally as user activity surges
Further evidence of the ongoing rebound in the DeFi sector can be found in the rising token values of some of the up-and-coming protocols.
More Information (https://cryptonews.net/en/news/defi/1203185/)
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I also believe that the DeFi summer is coming and creates a great impetus for the market to recover like 2020. After the recovery of BTC from 30K to 40K, DeFi tokens are growing very strongly, leading to other tokens price too, I can see altcoin season coming back.