Data from DeFi Llama has revealed that the industry has recovered 15.30% so far in the third quarter, from $54.66 billion it was on July 1st to stand at $63.02 billion as at the 23rd of August 2022. It’s no news that the Decentralized Finance (DeFi) space has been having it rough as Nairametrics reported that data provided by DeFi Llama revealed that the DeFi ecosystem lost 68.13% representing $155.79 billion in Total Value Locked (TVL) in the second quarter of 2022.
The rally can obviously be traced to the cryptocurrency market’s slow but steady recovery, which is led by Ether, the native token of the Ethereum blockchain. The Ethereum blockchain accounts for $35.44 billion or 56.24% of the TVL seen in the cryptocurrency space today.
Since the first of July, Ether has gained 56.65%, from $1,059.77 to stand at $1,660.10 as of the time of this writing. At peak prices in the third quarter, Ether has gained as much as 91%, as it traded a quarter of $2,022.79 on the 14th of August 2022 on news on the blockchain’s upcoming “Merge.”
The TVL is a measure of performance in the DeFi space. It measures the total value of cryptocurrencies that users “lock up” in various lending and staking protocols. It measures the commitment of cryptocurrencies locked up in a smart contract for any project, in a liquidity pool for lending or staked in a blockchain node for mining crypto that uses a proof-of-stake (PoS) consensus method. TVL is widely used to measure the health of a cryptocurrency.
Although we are seeing a steady growth in the DeFi ecosystem, one may think that investor confidence is slowly returning back to the market, however, this is not the case.
News continues after this ad
Glassnode’s latest report stated, “The recent price uptrend has failed to attract a significant wave of new active users, which is particularly noticeable amongst retail investors and speculators. The monthly momentum of exchange flows is also not suggesting a new wave of investors entering the market, implying a relatively lackluster influx of capital. The current market structure is certainly comparable with the late-2018 bear market, however, does not yet have the macro trend reversal in profitability and demand inflow required for a sustainable uptrend.”
Your email address will not be published. Required fields are marked *
Save my name, email, and website in this browser for the next time I comment.
Sign Up For Our Newsletter
Subscribe to our mailing list to receive daily updates direct to your inbox!
Follow the Money Follow the Market Follow the Deals Crypto on the go
Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |
Follow us on social media: