DeFi TVL hits record $ 157 billion as competition from Ethereum attracts investors

Altcoins and DeFi tokens have been on an upward trend over the past two weeksAnd as the end of August approaches, many projects are seeing their tokens hit new all-time highs.

Data shows that most of the top 10 DeFi tokens have gained more than 20% in the last month, with projects like Bancor (BNT) and THOR CHAIN ​​(RUNE) they have seen growth of over 115%.

Top 10 DeFi Assets by Price. Source: Messari

Let’s take a look at some of the factors behind the current DeFi token push and the projects that are leading the way in terms of protocol updates and cross-chain interoperability.

Blocked total value reaches new all-time high

DeFi TVL hits record $ 157 billion as competition from Ethereum attracts investors
DeFi TVL hits record $ 157 billion as competition from Ethereum attracts investors

DeFi Lama data shows that Total Value Blocked (TVL) across all DeFi protocols hit a new all-time high of $ 157.06 billion on August 22nd and many analysts believe the TVL is one of the best sentiment indicators within the DeFi ecosystem.

Total value locked in DeFi. Source: DeFi Lama

At the last rally the TVL reached an all-time high at the same time as the price of Bitcoin and Ether (ETH) rose, which reached an all-time high in the same period.

This time around, Bitcoin and Ether are more than 24% below their all-time highs, but the total value locked in DeFi has topped their previous record.

This suggests that the most popular DeFi tokens with multiple uses within the cryptocurrency ecosystem and decentralized funding have caught the attention of investors. In general, Unit exchange (UNI) and Sushi exchange (SUSHI) lead DeFi tokens, but several other strong winners this week include a 22% increase for Convex finance and a rebound of 17.84% in Pancake exchange.

New protocols are attracting investors’ attention

In the last 3 months there is also the arrival of popular new DeFi protocols like DinoSwap and the advent of competitors to the Ethereum network like Avalanche (AVAX) that have brought new energy and resources to the DeFi ecosystem.

DinoSwap and Avalanche have benefited from users fleeing the high fees of the Ethereum network, as both offer reduced transaction costs and faster confirmation times thanks to their cross-chain bridges.

Avalanche launched its DeFi Incentive Program “Avalanche Rush” on August 18th. which resulted in too much activity in the protocols involved, such as Aave, curve and SushiSwap. This liquidity mining event has proven to be very popular and helped raise its native AVAX token above $ 50 for the first time since mid-February.

DeFi tokens spiked early in the first half of 2021, followed by a spike in the price of NFTs and related assets. As summer draws to a close and NFTs break new sales and volume records every day, industry sales could soon begin and the DeFi ecosystem is warming up for a solo recovery.

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