Hype cycles can do wonders for token prices and social media stats, but they also put pressure on developers to get a working product that confirms the rising market cap.
With non-fungible tokens at the fore for the past six weeks, the decentralized financial (DeFi) sector stepped out of the spotlight as developers refined their protocols and looked for interoperable Ethereum network alternatives.
Data from CoinGecko shows that Total Value Locked (TVL) on all DeFi platforms has steadily increased since the market decline in late February. The TVL for the entire DeFi sector is now at a record high of $ 74 billion.
A closer look at the list of logs reveals that some of the biggest gains in the past seven days have been in logs running on the Binance Smart Chain (BSC). BSC has become one of the main competitors for the Ethereum Network (ETH) thanks to low fees, cross-chain features and connections to the entire Binance ecosystem.
At PancakeSwap (CAKE) and Venus (XVS) TVLs rose more than 30% over the past week, while THORChain (RUNE) and Alpha Finance (ALPHA) rose 61% and 47% respectively.
Notable gains from Ethereum-based projects include a 26% TVL gain for AAVE and Balancer (BAL), while the newly introduced Vesper (VSP) protocol quickly amassed $ 1.64 billion in the past six weeks has, which is an increase of 35% in the past seven days.
DeFi tokens rise higher
Alongside the soaring TVL, the token price of many top protocols rose as well, as savvy traders accumulated during the February lows, while crypto and mainstream news blew daily coverage of the latest record breaking NFT sales.
Data from CoinGecko shows that the total market capitalization of all DeFi tokens has also surpassed the highs set in February, now hitting a record $ 98.4 billion as institutional money continues to flow into Bitcoin (BTC) and the broader cryptocurrency sector.
THORChain once again tops the list of the biggest wins in the last seven days. The price rose 88% to a new record high of $ 8.89 while JUST (JST) and Acropolis (AKRO) are both up 57% and are currently trading at $ 0.129 and $ 0.076, respectively.
Bitcoin (BTC) is now back on the $ 60,000 level and Ether is trading near $ 2,000. This is spurring many industry representatives on an imminent price hike, according to the following tweet from Raoul Pal, CEO of Real Vision Group:
The market cap of the entire digital asset space seems like a big deal. The chart pattern suggests that acceleration is ahead of us in this pause. I suspect the total space will double in the next 2 to 3 months. Let’s see! pic.twitter.com/125lTVAkNH
– Raoul Pal (@RaoulGMI) March 30, 2021
Now that the NFT craze is waning, traders will be looking for the next sector to go on a hype cycle and DeFi seems ready to see another move up as token prices, transactions and TVL rise again.
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