- March 10, 2024
- Posted by: [email protected]
- Category:
The decentralized finance (DeFi) sector has recently achieved a remarkable feat, surging past the significant milestone of $100 billion in total value locked (TVL) within DeFi protocols. This notable accomplishment, reported by prominent DeFi statistics data provider DefiLlama, is largely attributed to the renewed fervor surrounding Bitcoin and the introduction of spot Bitcoin exchange-traded funds (ETFs) in January.
As of the latest data, the global TVL in DeFi protocols stands at an impressive $100.1 billion, with a 24-hour trading volume exceeding $10 billion. While these figures fall short of the previous record set in November 2021 at $189 billion, they signify a substantial achievement for the DeFi ecosystem, showcasing its resilience and ongoing growth.
Leading the pack in terms of locked value is the liquid staking protocol Lido, which secured an astounding $38.7 billion on-chain. Following closely are the staking ecosystem EigenLayer and the Aave protocol, each boasting over $11 billion in locked value, respectively.
This surge beyond the $100 billion mark is a momentous occasion for the DeFi sector, marking the first time in almost two years that it has reached such heights. The positive sentiment permeating the crypto markets since the launch of spot Bitcoin ETFs has played a pivotal role in this growth.
The institutional demand for Bitcoin ETFs has been a driving force, propelling the price of Bitcoin to new all-time highs, surpassing $70,000 on March 8. BitMEX’s research reveals that assets in Bitcoin ETFs reached an astonishing $28 billion on that day, excluding assets from Grayscale’s Bitcoin Trust, which transitioned to an ETF in January.
Amid this surge, reports have surfaced on social media platforms suggesting that over-the-counter (OTC) trading platforms are grappling with a shortage of Bitcoin, prompting them to turn to public exchanges to fulfill client orders. OTC desks, catering to large-volume traders and institutional investors, have contributed to outages on major centralized crypto exchanges such as Binance, Coinbase, Kraken, and Bybit due to a surge in trading volume as Bitcoin surpassed $60,000.
In response to the increased demand, Crypto.com CEO Kris Marszalek announced the hiring of 480 additional customer representatives. The escalating price of Bitcoin has also triggered a surge in memecoin prices, with tokens like Korra (KORRA) witnessing a remarkable 577% rise in the last seven days. Ribbit (RIBBIT) and PUG AI (PUGAI) followed suit with surges of 235% and 232%, respectively. Popular tokens such as Shiba Inu and Pepe recorded gains of 168% and 165%, contributing to a memecoin market capitalization of $61 billion.
Furthermore, the memecoin trend has propelled Dogecoin and SHIB into the top 1 tokens by market capitalization, with $26 billion and $20 billion, respectively. This confluence of factors, including the DeFi TVL milestone, the surge in Bitcoin prices, and the memecoin frenzy, underscores the dynamic and interconnected nature of the current cryptocurrency market landscape. It reflects the ongoing evolution and growing prominence of various segments within the crypto ecosystem, influencing and shaping market dynamics in unique ways.
