Despite a healthy correction in the wider cryptocurrency market following a week-long rally that lifted Bitcoin (BTC), Ethereum (ETH), and most altcoins to new all-time highs (ATHs), analysts believe the bullish run is far from over.
If the stock market demonstrates its resilience by setting new highs, the decentralized finance (DeFi) ecosystem, as well as exchange tokens, have not been forgotten in the race for new heights.
The Growing TVL and DeFi
In April, the Total Value Locked (TVL), a metric given by DeFiPulse, a decentralized finance market aggregator, reached new highs with no signs of slowing. The total hoard of smart contracts being tracked by DeFiPulse now has a total value of $59.12 billion, up from a TVL of $20 billion at the end of December when the bull run was just getting started to a record $30 billion in February, indicating a steady influx of funds into the burgeoning mainstream finance killer.
The amount of Bitcoin held in DeFi has also increased significantly, rising from 92,797 BTC in early April to 147,859 BTC today. The sum of Bitcoin entering the decentralized finance ecosystem also represents a move by market bulls to HODL their assets in the hopes of a higher return at a later date.
Investors tend to prefer the lockup of their Ether in Ethereum 2.0 deposit contracts, which has slowed Ethereum’s rise in DeFi. DeFi now has a total of 10.2 million Ethereum coins, down from 10.785 million in early April. DeFi is expanding in size and scope.
The Season of Exchange Tokens has arrived.
Cryptocurrency exchange tokens have been reinvigorated during the current bull run, as they are critical to the overall success of the cryptospace via the dissemination of decentralized offerings of crypto items.
Binance Coin is leading the surge, having risen to an all-time high of $586.23 this week. Huobi Token (HT), Nominex Token (NMX), Uniswap (UNI), and PancakeSwap (CAKE), among others, have all had strong weeks this week, and have done so regularly since the turn of the year 2021.