Thursday, June 20, 2024

While Metaverse tokens exhibit indications of weariness, DeFi TVL reaches new highs

In the cryptocurrency market, the sentiment is again buoyant since Nov 29. This, after its dip into the ‘extreme fear’ zone as measured on the crypto fear and greed index. The buoyancy is due to the rise in value of BTC to over $57,000. This helped move the crypto fear and greed index to the ‘fear zone’.

Although the sentiments on the index have seen wild fluctuations, overall the crypto market has seen breakout to new highs. These highs have also given rise to some concerns. The fear is that the metaverse and gaming sectors could witness major pullback. This is expected to happen if the traders wait for sustainable price levels. Speculation will then rise as to which sector will next see a bullish run.

A examination of the data shows that DeFi has been having a good run recently. The TVL in DeFi witnessed a rise to a high of $276.92 billion and then finally settled at $265.74 billion. The launch of several new protocols on ETH related networks has led to this surge in TVL. L2 solutions such as Arbitrum now allow users to perform crypto transactions with ease and at lower transaction fees. The increased activity on DeFi can also be gauged by the increased volume of trading on the DEXs.

Another change is the additional activity from dYdX. Ever since its launch, dYdX has become the preferred choice for decentralized options trading.

In other evidence of increased activity in DeFi, is the greater borrowed volume on lending platforms. This now stands at nearly $35 billion.

Clearly, crypto users are using their token as collateral against loans. These loans can again be deployed in crypto and DeFi. Users are probably expecting a continued bull market through to the end of 2021.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular