With blue chip DeFi plays such as Aave, Compound, and Synthetix making large gains recently, DeFi could be on the rise again. With two dips under $50 million total value locked in DeFi (TVL), after a high of nearly $90 million in mid-May, DeFi may well have found the bottom.
It seems almost impossible to believe that TVL in dollar value for DeFi reached a high of $88.45 billion less than a month ago. Since that time, the TVL has fallen as low as $48.48 according to DeFi Pulse.
Source: DeFi Pulse.
However, with many DeFi plays accruing value over the last couple of weeks, the signs are there that perhaps momentum is shifting back to DeFi now.
Compound Finance is one such heavy mover. A 170% price rise over the last two weeks has seen it move half way back towards its all-time high. Aave, the DeFi project with the largest amount of TVL in its protocol is another high gainer with almost 100% over the same time frame.
Curve Finance has seen a somewhat modest rise of 64% in comparison, but it has shot up the rankings of total value locked in DeFi, to now occupy the number 2 spot with $8.21 billion locked, just behind Aave in first place with $10.47 billion dollars of value locked up.
Source: DeFi Pulse.
One of the biggest gainers over the last few days was Synthetix. The protocol rose 93% in just the last 5 days. It now has just over a billion USD value locked up in its platform.
There is a similar story in play over on the Binance Smart Chain DeFi ecosystem. The TVL is rising, but this after a large dip from its high of $53.5 billion locked as at May 10. TVL then fell quickly over the next two weeks to bottom at $18 billion. Value locked has been slowly rising since then.
Source: DeFi Station.
However, one very big wrecking ball in the shape of Bitcoin looms on the horizen. The number one cryptocurrency is limping sideways, and should Bitcoin lose the support at $29,000 then the resulting carnage would undoubtedly bring the whole of DeFi crashing down with it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.