Traders provide for a “DeFi Summer 2.0” after the price increase of the entire blocked value and the tokens

Decentralized Funding (DeFi) was one of the main drivers for the cryptocurrency market in 2021 and so far platforms such as Uniswap (UNI), SushiSwap (SUSHI) and Aave (AAVE) have formed the foundation of the industry.

Like altcoins, DeFi tokens suffered huge losses as Bitcoin price corrected from its all-time high of $ 65,800, and data from Cointelegraph Markets Pro and TradingView show that the DeFi Index’s perpetual futures contract hit a low of $ 5,340 on July 20. The index is up 45% in value to $ 7,682, and this is keeping analysts watching to see if there is a pullback.

1-day chart of the DeFi Index Perpetual Futures contract. Source: TradingView

The locked total value reverses its course

In DeFi, Total Blocked Value (TVL) is a platform that (or the sector as a whole is used) to determine strengths and weaknesses on all platforms.TO

Total value locked in DeFi. Source: DeFi Lama
Traders provide for a “DeFi Summer 2.0” after the price increase of the entire blocked value and the tokens
Traders provide for a “DeFi Summer 2.0” after the price increase of the entire blocked value and the tokens

While this metric is still 30% below its all-time high of $ 154.910 million, the metric rose from $ 3 billion in July 2020 to $ 111,040 million in July 2021.

From the top 20 DeFi platforms, the highest percentage growth for TVL over the past seven days was a 68% increase in Flexa Protocol (AMP) and a 38% increase in Lido (LDO).

DeFi tokens are restored by increasing user activity

Another evidence of the current recovery in the DeFi sector is the rising value of tokens for some of the most promising protocols.

XVS, LUNA, RSR, AMP and KAVA (USDT pairs). 4 hour chart. Source: TradingView

Of the top 20 DeFi protocols, LUNA and AMP were the ones that rose the most in price over the past seven days, with increases of 83% and 64% respectively.

While the daily trading volume observed on decentralized exchanges has remained relatively unchanged over the past month below the $ 2 billion mark, Uniswap’s price rose 17.8% and SushiSwap 21.5% between July 21-27, and user activity appears to be on an upward trend.TO

DEX daily volume. Source: Dune analysis

The steadily increasing number of new users interacting with DeFi protocols is another sign of the growing strength of the industry.; a record 2,091 million unique addresses interact with a DeFi protocol as of July 27th.

Total number of DeFi users over time. Source: Dune analysis

On the whole, These advances have caught the attention of analysts and investors looking forward to a DeFi Summer 2.0..

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.

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