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.
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.
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.
While the daily trading volume seen across decentralized exchanges has remained relatively flat below the $2 billion level for the past month, the price of Uniswap rose by 17.8% and SushiSwap rose by 21.5% between July 21 and July 27 and user activity appears to be on the uptrend.
With DeFi tokens in general showing a little strength again from the recent crash, feels like we might get #DeFiSummer 2.0
— danso.eth (@samueldans0) July 6, 2021
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