DeFi flashed revival signs today as the retail and institutional inflows started pouring in as we can see further in today’s latest crypto news.
The inflows into the DEFI sector witnessed a huge uptick as the wider market recovered and investor sentiment improved. DEFI flashed revival signs despite having a rough start in 2022. The data from Messari shows the top ten ranked DEFI assets are now down between 10% to 50% since the start of the year but the positive thing is that the situation could change soon as the funds started flowing back into the DEFI ecosystem after a month of drops with the data showing retail funds are returning to the markets.
The data from DeFi Llama shows that the total value locked in DEFI climbed to $211 billion which is an increase of the low $185,14 billion. A closer look at the protocols that contribute to the total TVL shows that the biggest drawbacks in TVL in the past month were stablecoin-focused protocols like Curve, Convex finance, and more, which suffered from the collateral damage of rebasing projects like Wonderland and OlympusDAO imploding.
Projects that were integrated with Curve saw huge outflows and yearn Fiancne even experienced a 28,57 decline in TVL with Abracadabra. money seeing a TVL drop by 46% amid the controversy around members of the development team. Every crisis presents an opportunity but this instance is the decentralized stablecoin protocol Frax which benefited from the stablecoin collapse. The protocol’s TVL increased 35% over the past month.
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Aside from the total value locked metric that has its own advantages and disadvantages, the activity across DEFI applications continues to increase every year with the total volume transacted on DEXs over the past three months ranking among the highest recorded historical volumes. Uniswap remains the dominant DEX with 77.9% of the volume transacted followed by Curve with 7.8% and SushiSwap with 5.6%.
According to the data from TokenTerminal, the leading protocols by gross merchandise value in the past three days is a metric that measures the total value of sales over a certain period of time which were dydx, uniswap, and SpookySwap. The final metric pointing to the ongoing adoption of defi is the number of DEFI users which is growing steadily according to the data from Dune analytics.
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