Decentralized finances (DeFi) was one of the main factors pushing the crypto market higher throughout 2021. To this day, platforms such as Uniswap (UNI), SushiSwap (SUSHI) and Aave (AAVE) form the basis of this industry.
Like altcoins, decentralized financing tokens have fallen hard because of the price BTC fell from its high of $ 65,800. Data from TradingView shows that DeFi index of perpetual futures contracts fell to a low of $ 5,340 on July 20. Then the value of the index increased by 45% to $ 7,682.
The total locked value changes the trend
In DeFi, the total lock value (TVL) is used to determine strength and weakness across all platforms.
Although this metric is still roughly 30% lower than the historical maximum $ 154.91 billion, the metric increased from $ 3 billion in July 2020 to $ 111.04 billion in July 2021.
Of the top 20 decentralized funding platforms, the largest percentage increase in TVL in the last seven days was with the protocol Flexa (AMP) by 68% and 38% increase in Lido (LDO).
Sharp increase of user activity in DeFi sector
Further evidence of ongoing recovery in this sector can be found in the rising token values of some upcoming protocols.
Of the top 20 protocols, they were in the forefront LUNA and AMP. These were the two largest rising prices in the last seven days, with increases of 83% and 64%.
The daily trading volume recorded on decentralized exchanges has remained relatively low below $ 2 billion over the past month. The price of Uniswap increased by 17.8% and SushiSwap increased by 21.5% between July 21 and July 27. Thus, user activity appears to be on an upward trend.
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 number of 2,091 million unique addresses as of July 27.
Overall, these developments have attracted the attention of analysts and investors, who hope that decentralized financing will experience another bullish wave.
Disclaimer: This article is for information purposes only and should not be construed as investment advice.
