Decentralized financing (DeFi) was one of the main factors driving the cryptocurrency market throughout 2021 and, so far, platforms such as Uniswap (UNI), SushiSwap (SUSHI) and Aave (AAVE) are the basis of the sector.
Similar to altcoins, DeFi tokens took a beating when Bitcoin price corrected from its historic high of $65,800, and data from Cointelegraph Markets Pro and TradingView show that since the DeFi index, the perpetual futures contract hit a low of $5,340 on July 20th. Since then, the value of the index has risen 45% to $7,682, and that has left analysts watching to see if a reversal is needed.
Total amount blocked reverses course
In DeFi, Total Blocked Value (TVL) is a metric used to determine strength and weakness across platforms.
While this metric is still about 30% below its historic record of $154.91 billion, the metric has increased from $3 billion in July 2020 to $111.04 billion in July 2021.
Of the top 20 DeFi platforms, the highest percentage growth in TVL over the past seven days was a 68% increase in the Flexa (AMP) protocol and a 38% increase in the Lido (LDO).
DeFi tokens increase as user activity increases
Further evidence of continued recovery in the DeFi sector can be found in the rising token values of some of the emerging protocols.
According to the top 20 DeFi protocols, LUNA and AMP were the two biggest price winners in the last seven days, with increases of 83% and 64%, respectively.
While the daily trading volume seen on the decentralized exchanges remained relatively stable below the $2 billion level last month, the price of Uniswap increased by 17.8% and SushiSwap increased by 21.5% between July 21st and July 27th. July and user activity appears to be linked to an uptrend.
The continued increase in the number of new users interacting with DeFi protocols is another sign of the growing strength of the industry, with a record 2.091 million unique addresses interacting with a DeFi protocol as of July 27th.
All in all, these developments have caught the attention of analysts and investors awaiting a ‘DeFi Summer 2.0’.
With DeFi tokens in general showing a little strength again from the recent crash, feels like we might get #DeFiSummer 2.0
— danso.eth (@samueldans0) July 6, 2021
With DeFi tokens generally showing some strength again, it looks like we can get #DeFiSummer 2.0
– danso.eth (@ samueldans0) July 6, 2021
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