As Ethereum rivals attract investors, DeFi TVL reaches a record $157B


Altcoins and DeFi tokens have I’ve been crying for the past two weeks As the end of August approaches, the tokens of many projects have reached record highs.

Data shows that in the past 30 days, most of the top 10 DeFi tokens have increased by more than 20%, among which projects such as Bancor (BNT) and THORChain (RUNE) have increased by more than 115%.

Top 10 DeFi assets by price. source: Mesari

The following are some of the factors behind the current growth of DeFi tokens, as well as the leading projects in protocol upgrades and cross-chain interoperability.

Locked total value hit a record high

Data from DeFi Llama shows that the total lock-in value (TVL) of all DeFi agreements reached a record high on August 22, reaching $157.06 billion. Many analysts believe that TVL is one of the best sentiment measures in the DeFi ecosystem .

The total value locked in DeFi. source: DeFi Llama

During the previous rise, TVL hit a record high, while the prices of Bitcoin and Ethereum soared (Ethereum), the two reached a record high almost at the same time.

This time, Bitcoin and Ethereum are more than 24% lower than their historical highs, but the total value locked in DeFi has exceeded the previous record.

This shows that popular DeFi-related tokens, which have multiple utility in the encryption and DeFi ecosystem, have attracted the attention of investors. Normally, Uniswap (UNI) and SushiSwap (SUSHI) lead the DeFi tokens, but some other strong gainers this week include Convex Finance, which increased by 22% and PancakeSwap, which increased by 17.84%.

related: This time is different: when DeFi meets NFT

New agreement attracts attention

The past 3 months have also witnessed the arrival of the epidemic New DeFi protocol, such as DinoSwap As well as the rise of Ethereum network competitors like Avalanche (AVAX), they have brought new energy and funds to the DeFi ecosystem.

DinoSwap and Avalanche benefit from the high fees for users to escape the Ethereum network, as both reduce transaction costs and speed up processing time through their cross-chain bridges.

Avalanche launched “Avalanche Rush” DeFi Incentive Program On August 18, this brought a series of events to the agreements involved, including Aave, Curve, and SushiSwap. Facts have proved that this kind of liquidity mining activity is very popular and helped its native AVAX token to rise above $50 for the first time since February.

In the first half of the year, DeFi tokens rose early, and then the prices of NFT and NFT-related assets rose sharply. As the summer is coming to an end, NFT sets dazzling new sales records and transaction volumes every day, industry rotation may happen soon, and the DeFi industry may be heating up for its own operations.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.