DeFi platforms register steady inflows as metaverse tokens exhibit signs of exhaustion
Metaverse tokens have started to drop as DeFi platforms register steady inflows pushing their total volume locked (TVL) to a new all-time high.
The cryptocurrency market was back on the rise with Bitcoin (BTC) recovering above the $57000 support and lifting the index from ‘’extreme fear’’ to ‘’fear’’ zone.
Despite all these ‘’fear’’ and ‘’extreme fear’’ sentiments that have been dominating the market, some crypto markets like Metaverse-related projects and gaming protocols have all experienced breakouts to new all-time highs.
However, the rapid gains in these projects brought about concerns as to whether metaverse and gaming sectors would see a significant pullback in the short term.
The available data shows that the decentralized finance (DeFi) sector has been gaining momentum gradually in the last few months. The total value locked in DeFi reached a new ATH of $276.92 billion on November 9 before slightly pulling back to $265.74 billion at the time of writing.
The surge in TVL comes as new protocols continue to launch on Ethereum (ETH) compatible networks such as layer-two solutions like Arbitrum and Fantom offering users the ability to conduct transactions in a lower fee environment.
Rise of Decentralised Exchanges (DEXes) activity
Another thing that is boosting the DeFi economy is the uptick in the trading volume on decentralized exchanges (DEXes) like the SushiSwap and Uniswap, which have been experiencing a slow increase in activity since the market drop in mid-July.
A decentralized layer-two perpetual and features exchange that surprised early adopters in September, when it airdropped its new governance token to users who had previously engaged with the protocol has been one of the notable changes in the addition to the activity from dYdX.
Since dYdX was launched it has become the go-to option for decentralized options trading in the crypto market and at one time saw its trading activity surpass the spot trading activity on Coinbase.
Another thing that is driving the DeFi economy is DeFI Loans.
Crypto holders are locking up their tokens as collateral to get loans that can be used in DeFi and crypto-related activities.
Currently, the cryptocurrency market cap is at $ 2.63 trillion and the Bitcoin dominance rate is at 42.1%