The decentralized finance (DeFi) sector is enjoying a resurgence with notable growth in key metrics such as active loans and total value locked (TVL). These metrics reflect the participation and overall health of the DeFi market.
Key Figures
Active Loans:
Reaching 13.3 billion USD, the highest level since the beginning of 2022.
Reflects the increase in leverage in DeFi, often associated with the onset of a bull market.
Total Value Locked (TVL):
TVL increases 160% from the 2023 low, reaching about 96.5 billion USD.
TVL doubled in the first half of 2024, reaching a high of $109 billion in June.
Top Protocols
Lido: Leading with TVL of 38.7 billion USD.
EigenLayer and Aave: Each protocol holds more than $11 billion in locked assets.
In-depth Review
Taiki Maeda, founder of the Humble Farmer Academy, predicts a “DeFi renaissance” after more than four years of underperformance. He believes that DeFi OGs are now in the category of “high float, low fully diluted valuation (FDV)” coins with strong catalysts on the horizon (InvestingHaven) .
Market Comments
Bitcoin and Ethereum: Bitcoin price is currently at $66,500, while Ethereum is at $1,900. Both coins have shown relative stability despite market fluctuations.
Contract Liquidation: Total contract liquidation value is up to 379 million USD, mainly long-term buying positions. This reflects high selling pressure and investor caution.
Market Sentiment: Investors can be more cautious and reduce long-term buying positions, waiting for stability or positive signals from the market (InvestingHaven).
In short
The DeFi market is showing strong signs of recovery with a significant increase in active loans and #TLV . However, investors should be cautious and closely monitor the latest developments to make reasonable investment decisions.
Information sources:
CryptoPotato
InvestingHaven
