DeFi TVL hits a record $ 157 billion as Ethereum competitors attract investors


Altcoins and DeFi tokens have been on the line for the past two weeks and by the end of August many projects are reaching new all-time highs.

The data shows that the majority of the top 10 DeFi tokens have gained more than 20% in the past 30 days, with projects like Bancor (BNT) and THORChain (RUNE) posting gains of over 115%.

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Top 10 DeFi Assets by Price. Source: Messari

Here’s a look at some of the factors behind the current DeFi token surge and the projects that are leading the way in terms of protocol upgrades and cross-chain interoperability.

The total locked value reaches a new all-time high

Data from DeFi Llama shows that Total Value Locked (TVL) in all DeFi logs hit a new all-time high of $ 157.06 billion on August 22, and many analysts believe TVL to be one of the best sentiment indicators in the DeFi ecosystem is.

Total value locked in DeFi. Source: DeFi Lama

On the previous attempt, the TVL reaching an all-time high coincided with the rising prices of Bitcoin and Ether (ETH), both of which hit their all-time highs around the same time.

This time around, Bitcoin and Ether are more than 24% below their all-time highs, but DeFi’s overall value surpassed its previous record.

This suggests that popular DeFi-related tokens with multiple uses within the crypto and DeFi ecosystem have caught the attention of investors. Typically Uniswap (UNI) and SushiSwap (SUSHI) top the list among DeFi tokens, but some other strong winners this week include a 22% increase for Convex Finance and a 17.84% increase for PancakeSwap.

Related: This time it’s different: When DeFi meets NFTs

New protocols are attracting attention

The last 3 months also saw the introduction of popular new DeFi protocols like DinoSwap and the rise of Ethereum network competitors like Avalanche (AVAX), which have brought fresh energy and funds to the DeFi ecosystem.

DinoSwap and Avalanche have benefited from users fleeing high fees on the Ethereum network because they both reduce transaction costs and speed up processing times across their cross-chain bridges.

Avalanche launched its DeFi Incentive Program “Avalanche Rush” on August 18th, which has generated a lot of activity among the protocols involved, including Aave, Curve and SushiSwap. This liquidity mining event has proven hugely popular and helped push its native AVAX token back above $ 50 for the first time since February.

DeFi tokens rallied early in the first half of the year, followed by a spike in the price of NFTs and NFT-related assets. As summer draws to a close and NFTs hit new breathtaking record sales and volumes every day, it’s possible that a sector rotation will soon take place and the DeFi sector warms up for its own run.

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