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TOP 3 indicators that predict the new bullrun of DeFi sector

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DeFi’s decentralized finances were large part of the rapid growth observed in the cryptocurrency market in 2021. Decentralized exchanges as Uniswap a SushiSwap and lending protocols such as Aave a Compound created a new dimension of token usefulness.

Data from the Messari DeFi Asset index shows that in the last 30 days, most of the top 10 tokens in the sector have gained more than 20%. Terra (LUNA) with the highest profit recorded a price increase of more than 116%.

DeFi asset index.  Source:
DeFi asset index. Source:

So let’s take a look at the top 3 indicators that predict the bullrun DeFi sector:

  • rapidly resetting total locked value
  • growing trading volumes on decentralized exchanges
  • growth of new users of decentralized funding

The locked total value returns to the historical maximum

Data from the DeFi Llama show that the total locked value (TVL) on DeFi platforms is approaching his ATH to $ 155 billion. It currently represents $ 140.56 billion.

Total locked value (TVL) in DeFi.  Source: DeFi Llama

TVL ‘s biggest profits in the last 7 days include a 22% profit for Lido (LDO). Another is a 36% profit from Venus (XVS).

The growing TVL is a reflection of growing token values ​​and increased activity and deposits in the ecosystem. This strengthening of sentiment was also seen in crypto index of fear and greed (Fear & Greed Index). Over the past month, he has gone from extreme fear to greed.

Fear Greed crypto index.  Source: Alternative


Fear Greed crypto index. Source: Alternative

DEX volumes are growing

Another sign that the sector is waking up is the growing daily volume of trades on decentralized exchanges (DEX). He ‘s at the head Uniswap company, which, according to Dune Analytics, has been steadily increasing since the last week of July.

Daily DEX volume.  Source: Dune Analytics

The increase in DEX’s activity came despite the rising costs of completing the transaction in the network ETH. This is a number that since the introduction London hard fort still growing. However, the sudden rise in token prices has forced users to resist the environment with higher fees.

Average gas charge Etherea.  Source: Etherscan

Growth in the number of DeFi users

The third sign that activity and tokens could continue to grow, is the growing number of users entering the sector.

Data from Dune Analytics shows that the number of new users calculated from unique addresses interacting with DeFi protocols has increased and currently reaches record value of 3,181,408 users.

Number of DeFi users.  Source: Dune Analytics

New users participate in the decentralized finances ecosystem and move their funds from the traditional financial system. Token prices could thus continue to rise, as attractive returns and the ability to participate in protocol management increase investor interest.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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