Data from Messari confirmed an increase in the number of DeFi tokens newly listed on the platform. In the past 30 days, the majority of tokens listed on the site’s DeFi Assets index have increased by more than 20%.
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These four, Maker’s MKR, Synthetic Network Token (SNX), Venus Protocol (XVS) and SushiSwap’s SUSHI gained the most during the same time frame.
From Jan. 1 to Jan. 9, following the drop in the bitcoin market capitalization, the decentralized finance sector saw its total value locked (TVL) rise from $15.678 billion to a record-high $23.092 billion.
The recent spike in the TVL is pioneered by Ethereum alternatives like Binance Smart Chain and the rest. Now that Bitcoin seems to be dropping in price. Investors are looking at DeFi projects for yields on their holdings. The attention of investors moving towards the DeFi sector will likely spark the new DeFi tokens bull run.
The bitcoin market dropped over $100 billion in the past few days. During this period many of this funds flushed into altcoins including DeFi tokens. The recent increase in the TVL on various DeFi tokens is as a result of the drop in the price of BTC.
Low Fees on Alternative Blockchains:
Majority of these DeFi projects gulping up funds are majorly on Binance Smart Chain (BSC). The Binance Smart Chain is a top alternative to Ethereum Blockchain with a faster and low fee transactions for DeFi tokens. Most of the projects on Ethereum are now moving to BSC as an alternative to its users who are looking to minimize the high fees spent on using the DApps created on Ethereum Blockchain.
PancakeSwap the top Automated Market Maker (AMM) on BSC is the pioneer DApp for AMM swaps launched on Binance Smart Chain with majority of the projects on BSC opening markets on the platform. The swap also is one of the most user-friendly web version of AMM available on the DeFi sector.
Total value locked is on the increase
Apart from the data provided by Messari, the data shared by DeFi Pulse confirms that the total value locked across DeFi protocols has increased from $15.678 billion to $23.092 billion over the past 10 days. This was followed by the big drop in the price of bitcoin and the whole crypto market capitalization.
The more the number of investors depositing into DeFi projects to get returns on their investments, the more the value will keep increasing. One of the top TVL pools on Ethereum includes: Yearn.Finance, Synthetix Token Network and Sushi.
While on Binance Smart Chain we have Venus Protocol (XVS)and others.
The next altcoins boom might be pioneered by DeFi tokens.