Altcoins and DeFi tokens have been on an upward trend for the past two weeks And as the end of August approaches, many projects are seeing their tokens hit new all-time highs.
Data show that Most of the top 10 DeFi tokens have gained more than 20% in the last month, with projects like Bancor (BNT) and THORChain (RUNE) they have seen gains of over 115%.
Let’s take a look at some of the factors behind the current push for DeFi tokens and the projects that are leading the way in terms of protocol updates and cross-chain interoperability.
Total locked value reaches a new all-time high
Data from DeFi Llama shows that the total value blocked (TVL) on all DeFi protocols reached a new all-time high of $ 157.06 billion on August 22. and many analysts believe that the TVL is one of the best measures of sentiment within the DeFi ecosystem.
During the previous rally, the TVL reached an all-time high coinciding with the rise in the prices of Bitcoin and Ether (ETH), that reached all-time highs during the same period.
This time, Bitcoin and Ether are more than 24% below their all-time highs, but the total value locked in DeFi has surpassed their previous record.
This suggests that the most popular DeFi tokens with multifaceted utility within the cryptocurrency ecosystem and decentralized finance have attracted the attention of investors. In general, Uniswap (UNI) and SushiSwap (SUSHI) lead DeFi tokens, but some other strong winners this week include a 22% increase for Convex Finance and a 17.84% rebound in PancakeSwap.
New protocols capture investors’ attention
The last 3 months have also seen the arrival of popular new DeFi protocols like DinoSwap and the emergence of competitors to the Ethereum network such as Avalanche (AVAX) that have brought new energy and funds to the DeFi ecosystem.
$ 500M In TVL!
We are very grateful to the @ 0xPolygon community and all of our partners for helping us achieve this huge milestone so quickly. The @DinoSwapHQ team is working hard everyday to continue expanding and providing the best farming experience. Onwards! pic.twitter.com/4h4hrSPKN4
– DinoSwap (@DinoSwapHQ) July 31, 2021
USD 500 million in TVL!
We are very grateful to the Polygon community and all of our partners for helping us reach this important milestone so quickly. The Dino Swap team is working hard every day to continue expanding and delivering the best yield farming experience. Ahead!
DinoSwap and Avalanche have benefited from users fleeing the high fees of the Ethereum network, as both offer reduced transaction costs and faster confirmation times thanks to their inter-chain bridges.
Avalanche launched its DeFi incentive program “Avalanche Rush” on August 18, which has caused a great deal of activity in the protocols involved, such as Aave, Curve and SushiSwap. This liquidity mining event has proven to be very popular and has helped lift its native AVAX token above $ 50 for the first time since mid-February.
In the first half of 2021, DeFi tokens rose early and were followed by an increase in the price of NFTs and related assets. As the summer draws to a close and NFTs set new sales and volume records every day, an industry turnover may soon take place and the DeFi ecosystem is warming up for a solo rally.
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