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Funds stored in DeFi jump $ 1 billion as analysts predict post-election spike

October 23, 2020

After a six week cooldown for most decentralized funding protocols The DeFi rally is back in action as the total value climbs to new highs.

The amount of crypto-collateral stored via various DeFi protocols has hit a new record of $ 12.3 billion according to DeFi Pulse.

In just 48 hours, more than $ 1 billion was added to the total value of the US dollarAlthough the exact numbers vary on other analysis platforms such as Coingecko and Coinmarketcap.

Funds stored in DeFi jump $ 1 billion as analysts predict post-election spike
Funds stored in DeFi jump $ 1 billion as analysts predict post-election spike

TVL on the Coingecko tracker reports that it is around $ 11.6 billion. The surge follows the fact that Bitcoin hit a new high of $ 13,200 in 2020 on October 21st, triggered by PayPal’s crypto payment messages.

Coingecko reports that DeFi’s total market cap – as opposed to TVL – for all tokens, including the chainlink adjacent to DeFi, is $ 14.3 billion. This equates to an increase in DeFi market cap of $ 2 billion in the last 48 hours.

DTC Capital boss Spencer Noon argues this The decentralized financial bull market will soon enter the second round::

Noon commented on that Many high yield farmers have simply turned to BTC after months of solid earnings and announced the election as a catalyst for a second DeFi boom::

“The likely turning point for DeFi’s bullish Phase 2 is the pick where there are multiple outcomes that would be favorable to risk-weighted assets.”

The news from PayPal and the general rally in the crypto markets have resulted in numerous DeFi coins with solid profits in the past 24 hours including Airswap, Aave, Synthetix and Curve.

One factor driving TVL is the rising prices of DeFi tokens that are used for stakingincluding Ethereum as many of the liquidity funds are based on ETH. In the past 48 hours, Ethereum prices have increased 12% and peaked at $ 415 in six weeks.

According to Messari’s DeFi Return Index, which measures the performance of the top 46 DeFi assets, Many DeFi tokens are still down more than 40% in the last month. The biggest losers include tokens from Meta, bZx, Augur, SushiSwap, Swerve and Curve.

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