- The Defi apps are going through an uptrend,, with many tokens increasing in price.
- While the reasons are a few, this has resulted in the increasing market dominance of DeFi too.
The DeFi space is seeing a purple patch right now. For the last few days, the tokens of this protocol are soaring high in price. And at the forefront, we see Aave, Uniswap, Synthetic, and Compound. All these tokens have reported double-digit gains in the past 24 hours.
Defi on a tear
As per a report of CoinGecko, DeFi assets rocked the charts on Saturday. By capitalization, the top ten coins saw an uptick of 2%. The frontrunners mentioned above scored a sharp rise. UNI received 12%, SNX got 19%, while AAVE and COMP rallied by 30%. The second-tier coins also gained a significant 7% rise in their value. They were PancakeSwap (CAKE), dYdX (DYDX), and Curve (CRV).
In the past ten days, the combined market cap and the total value of DeFi protocols saw a rise of more than 10%. It should be noted that DeFi tokens didn’t have impressive this year. They underperformed in 2023 due to unsuccessful meme coins and Bitcoin’s gaining attention with the advent of BRC20.
In April, the BRC-20 standard gained traction. It resulted in the resurgence of meme coins and raised the network’s on-chain activity. Also, Bitcoin’s price has been rallying for various reasons. Its market dominance is more than 50% now, and its value is up by 20% in less than ten days.
Other development happened in the domain.
Now all this price surge has driven crypto investors’ attention toward DeFi assets. According to a report released by DappRadar, the number of wallets integrating with DeFi projects has also risen. While Lido gained 17% in the rally, the Aave registered 28% growth this month.
Meanwhile, the number of monthly users also increased. Polygon’s PoS Chain bridge saw a jump of 17%, and Pendle acquired a 30% hike in it. Another factor that seemed to be a significant reason for this revival is the integration of liquid staking tokens (LSTfi) into dApp. The tickets from this nascent sphere saw notable progress in their holdings too.
The Rocket Pool’s rETH and Lido’s stETH let their holders claim staking rewards without limiting the liquidity or running a node. And as per the market experts, this is quite a positive sign for the entire Defi ecosystem. The DeFi applications offer some added advantages to LST holders. They enhance the capital efficiency of staking exposure, making them an attractive option for investors.
So all this translates to favorable market trends for some time. As we all know that trends come and go, we’ll have to see how long this lasts. Yet, according to some crypto enthusiasts, this growth and the induction of new technology will have an enduring impact on the market. It would pave the way for the launch of more DeFi projects offering new solutions. Defi supporters are certainly having a great time; they are hopeful that this uptrend will continue for quite some time. But markets are volatile and uncertain, so it is best to keep our fingers crossed and ready to see a change in the trend.