While cryptocurrency investors remain fixated on the possibility of a spot Bitcoin exchange-traded fund (ETF) launching sooner rather than later, the decentralized finance (DeFi) sector has staged a muted recovery, with many tokens outperforming Bitcoin (BTC) and Ethereum (ETH).
The market value of DeFi assets increased 15% to $49.4 billion, the highest in three months. Similarly, the total value locked (TVL), a measure of the amount of assets deposited in DeFi protocols, surpassed $40 billion for the first time since August.
In terms of deposits, decentralized exchange (DEX) Sushi, cross-chain protocol Thorchain, and DAI-focused lending platform Spark outperformed in October. The TVLs of these projects rose 32%, 25%, and 22%, respectively, just last week, according to DeFi data platform DeFi Llama.
Bitcoin Hits 17-Month High
This has been a stellar week for Bitcoin, with the world’s most valuable cryptocurrency up 7% in the last 24 hours and 18% in the past week. The move was prompted by speculation that BlackRock’s spot Bitcoin ETF may be coming.
Bitcoin rose above $35,000 for the first time since May 2022, but then pared some gains. According to a graph of David Lawant from FalconX, yesterday’s short liquidations were the largest in the past year.
Top earners
In this context, Kwenta, a perpetual trading protocol that operates on the Optimism network, an Ethereum Layer 2 network, saw its token increase by 43% last week.
Meanwhile, Thorchain’s RUNE token and oracle provider Chainlink’s LINK rose nearly 40%. DeFi stalwarts AAVE and LIDO are up 32% and 22%, respectively, and DYDX is up 29% as the perpetual exchange moves closer to launching its own Cosmos-based appchain.
*Translation of the article “DeFi Sector Heats Up Amid Broad Market Rally” with permission from The Defiant.
Notice: The text presented in this column does not necessarily reflect the opinion of CriptoFácil.
Source: https://www.criptofacil.com/setor-defi-esquenta-em-meio-a-ampla-recuperacao-do-mercado/
