The amount of funds locked in various DeFi protocols has grown significantly over the past two weeks. This means that the bearish trend is losing strength.
Sellers are gradually leaving the crypto market, increasing capital inflows into decentralized finance (DeFi).
Various services analyzing the state of the DeFi industry note that the amount of funds locked in protocols has been growing steadily over the past few weeks.
TVL has grown by 20% since the end of June, according to DeFillama, from $ 92 billion to $ 111 billion.
DappRadar saw TVL grow 16% to $ 88 billion. Meanwhile, DeFiPulse, which tracks far fewer protocols, saw a 12% increase to $ 54 billion. GoinGecko TVL data shows a 24% increase since June 27.
DeFi is recovering
TVL in Binance Smart Chain-based protocols has also grown from $ 17.1 billion on June 28 to $ 19.5 billion at the time of writing, according to BSCproject. This 14% increase is in line with the overall performance in the DeFi segment. This means that BSC is no longer growing ahead of the market.
Market participants prefer not to sell their assets, but to invest them in DeFi projects, so the volume of blocked funds in these protocols is growing. The total cryptocurrency market capitalization has remained almost unchanged over the past two months. The indicator fluctuated in the range of $ 1.5 – $ 1.7 trillion.
It is difficult to pinpoint the industry leader in terms of blocked funds as the three data providers produce different results. DeFiLlama ranks Curve Finance first with $ 9.3 billion in blocked funds, DappRadar believes Uniswap is the best ($ 8.3 billion), and DeFiPulse prefers Aave with $ 10.5 billion TVL.
Industry experts also notedthat the number of DeFi users reached 3 million. However, according to Alex Kruger, in fact, there are much fewer people using DeFi services, since one person can have several addresses.
THREE MILLION DEFI USERS ?https: //t.co/H11HBUIrOe https://t.co/OGXaFP2qo3 pic.twitter.com/kV0JxwrXMm
– Richard Chen (@ richardchen39) July 12, 2021
“I think the real number is somewhere in the range from 1.2 million to 800 thousand,” the expert noted.
Bitcoins are leaking from exchanges
Capital outflows from cryptocurrency exchanges are fueling TVL’s growth in the decentralized finance segment. When investors or traders get ready to sell coins, they list them on cryptocurrency exchanges. This was the case in April and May.
But at the stage of consolidation, they withdraw money back to cold wallets for long-term storage. The latest Glassnode report confirms this.
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