DeFi TVL hits new highs while Metaverse tokens show signs of exhaustion

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Crypto sentiment rallied again on November 29 when the index recently fell into the “extreme fear” zone of the Crypto Fear and Greed Index after Bitcoin (BTC) surpassed the $ 57,000 support level, pushing the index higher into the “fear zone”.

Fear and Greed Index. Source: Alternative.me
Despite the feeling of “dread” and “extreme fear” that has dominated the market since the index started falling on November 16, several subsectors of the cryptocurrency market, including projects related to metavers and gaming protocols, have experienced massive outliers. maximum time. Absolutely.

The rapid growth seen in these projects has raised some concerns that the metaverse and gaming sector could face a severe downturn in the short term if traders lock in profits and wait for more stable price levels, leading many to wonder which market segment is in. Will win. Stay close to see bullish momentum and higher prices.

A deep dive into the available data reveals that the decentralized finance (DeFi) segment of the market has been gaining momentum in recent months as the total value recorded in DeFi climbed to a new all-time high of $ 276.92 billion on November 3 9 and is now is 265.74 billion dollars.

The total cost is tied to DeFi. Source: Devi Lama
The increase in TVL comes as new protocols continue to roll out on Ethereum (ETH) compatible networks like Fantom and Layer 2 solutions like Arbitrum, which empower users to shop in a low-fee environment.

On the subject: Ethereum 2 TVL Layer Reaches All-Time High

DEX activity picks up steam again
Another sign that activity on DeFi is picking up is the slight increase in trading volume on decentralized exchanges (DEXs) such as Uniswap and SushiSwap, which have seen slow growth in activity since the market bottomed out in mid-July.

Total trading volume on decentralized exchanges. Source: Token Terminal
As shown in the chart above, volume at the top of the DEX is currently steadily returning to levels similar to those seen in the beef market in the first half of 2021.

One of the most notable changes was the addition of activity from dYdX, a decentralized tier 2 perpetual futures exchange that surprised early adopters back in September when it ditched a new governance token for users who had previously participated in the protocol.

Since its launch, dYdX has become the preferred choice for decentralized options trading in the cryptocurrency market, and at some point their business surpassed the spot trading activity on the largest US cryptocurrency trading platform.

Recent data shows DeFi activity is on the rise, along with fundamental sentiment, where the market moves in leveraged volume on top lending platforms, which are now approaching an all-time high of $ 35 billion.

The volume of attracted lending sites. Source: Token Terminal
This indicates that cryptocurrency traders will unlock their tokens as collateral for loans that can be used further in cryptocurrency and DeFi related activities, and suggests that many expect the beef market to continue as the ecosystem prepares to close in 2021 and 2022. warm start. …

The total market value of the cryptocurrency is now $ 2.63 trillion, and the dominance of bitcoin is 42.1%.

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