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.
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
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.
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
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.
On the whole, These advances have caught the attention of analysts and investors looking forward to a DeFi Summer 2.0..
Given that DeFi tokens are generally showing strength again since the recent crash, it feels like we could have a DeFi 2.0 summer.
to???? danso.eth (@ samueldans0) July 6, 2021
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