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Intro: As DeFi TVL hit an all-time high, the other tokens and projects that offer off-chain bridges and a lucrative liquidity mining pool see an influx of funds.
DeFi tokens and altcoins, both have been gaining strength for the last two weeks and as the August end approaches near, many projects are witnessing their tokens reach to all-time highs. According to the data, there are at least the top 10 DeFi tokens that gained more than 20% in the past 30 days.
As per the report, projects like Bancor (BNT) and THORChain (RUNE) are gaining in excess of 115%. There are some important factors that contribute to the current success of DeFi tokens and the projects are leading the way in protocol upgrades and inter-network compatibility.
Locking the all-time high
DeFi Llama Data Block reveals that the Total Locked Amount (TVL) across all DeFi protocols hit a new all-time high of $ 157.06 billion on Aug.22. Many analysts believe TVL is one of the best indicators of sentiment in the DeFi ecosystem. In the last run-up, TVL reached an all-time high, coincided with the surging prices of Bitcoin and Ether (ETH). they both reached their all-time highs around similar times.
Both Bitcoin and Ethereum are more than 24% below their all-time highs. But the total value locked in DeFi has breached its previous record. This means that investors are more interested in DeFirelated tokens with various multifaceted utilities in the DeFi and cryptocurrency ecosystem. In the DeFi tokens, Uniswap (UNI) and SushiSwap (SUSHI) lead to more DeFi tokens. The other strong gainers this week include Convex Finance, with a 22% increase and a 17.84% rise from PancakeSwap.
New protocols, new projects
DinoSwap is the new entrant to the DeFi protocols in the past three months and the rise of Ethereum network competitors like Avalanche (AVAX) that have brought fresh energy and funds to the DeFi ecosystems.
Both DinoSwap and Avalanche has helped users to ditch the high fees of the Ethereum network because both off reduced transaction costs. They have a faster processing time through their cross-chain bridges.
Avalanche Rush was launched by Avalanch on August 18 which has witnessed many activities to the protocols involved like Aave, Curve, and SushiSwap. The event proved to be a success as it helped bring back his own AVAX token above $ 50 for the first time since February.
DeFi tokens movement was purely based on the surge price of NFTs and NFT related assets. This was happening during the first half of the year. As summers are close and NFTs are recording new record-high sales and volumes every day. A sector rotation is on the cards and the DeFi sector may be warming up for a run of its own.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
