DeFi Market Bouncing Back: Total Value Locked Spikes to Nearly $42 Billion Amid Token Performance Shifts
Earlier this month, the DeFi market dipped below its $40 billion mark but now witnessing a resurgence after the TVL (Total value locked) surpasses its $41 billion milestone.
Despite the fluctuations in token performance, the TVL in DeFi reached $41.94 billion on Sunday, surpassing the below $40 billion threshold. On the other hand, the DeFi token market is worth $45.08 billion with approximately $1.8 billion traded in 24 hours. This represents a daily increase of 6.17% and the trade volume has increased by 6.39%.
DeFi Makes a Comeback
Among the ten leading DeFi tokens, the top gainer for this week is Chainlink (LINK). Chainlink has been making waves in the DeFi sector with its innovative approach to smart contracts and data connectivity. With its recent victory after becoming one of the top five most active development projects on Github, LINK’s price followed and increased by 15.9% in that same time. This week, LINK went up by 5.14% taking the spot as the top gainer in the DeFi market.
On the other hand, Synthetix (SNX) and Injective (INJ) went down by 2.70% and 3.36% respectively over the past week.
Smaller DeFi players such as Ellipsis (EPS) also saw a significant rise of 129% while Thorchain (RUNE) went up by 49.29%. Conversely, Persistence (XPRT) plummeted by 12.47% and Mobox (MBOX) got a decline of 10.94%.
Curve’s CRV token still continued to struggle after its recent hacking incident and went down by 4.81% this week.
Meanwhile, DeFi’s TVL nearly slipped but stayed above its critical level. Leading the TVL dominance is Lido Finance, locking an impressive $15.11 billion in its liquid staking protocol. Following its lead are Makerdao, Aave, Uniswap, and Tron’s Justlend protocol secure subsequent ranks based on TVL magnitude.
Ethereum remains the reigning champion in TVL distribution with over 58% of the TVL market share equivalent to $24.38 billion. Tron’s TVL also captures a 13.31% market share, boasting a collective value of $5.56 billion. Binance Smart Chain (BSC), Arbitrum, Polygon, Optimism, Avalanche, Mixin, Solana, and Cronos trails behind asserting their presence.
Digging deep into the DeFi’s impact, a staggering amount of $20.252 billion (10.89 million ether) remains locked across 23 distinct liquid staking DeFi protocols associated with Ethereum. This figure encompasses nearly half of the entire TVL within the DeFi ecosystem across all 202 blockchain networks.
Moreover, the DeFi sector has received a series of innovative developments. Paypal, one of the leading payment systems has released its plans to introduce its PYUSD stablecoin soon. Issued by Paxos — a renowned blockchain infrastructure firm — PYUSD is set to make a mark as a dollar-pegged asset, adding a layer to the DeFi narrative. Following this announcement was Coinbase’s launch of its Ethereum (ETH) layer-2 scaling solution to further solidify the platform’s commitment to shaping the future of the digital landscape.
In Conclusion
It was indeed a good week for the DeFi ecosystem. Its resurgence undeniably fosters optimism and provides fertile ground for more innovation. As the DeFi sector continues to unfold, the convergence of technology and finance reshapes the building of the financial realm and embracing change while navigating a dynamic digital landscape.
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