Crypto recovery is happening
Market shows signs of crypto recovery
After a rocky period during the months of April and May, the crypto market has shown signs of recovery.
As of July 6, total market capitalization has increased by 2%, or $70 billion. This marked a big turn in the crypto recovery period, following some period of slump.
Defi assets is leading the charge
Notable in the start of this crypto recovery is Defi-related assets. After about eight weeks of mostly bearish-trading, some assets have seen their values doubled. The top 100 Defi tokens have reported a market cap of $79 billion, according to CoinGecko. This is about more than 5% of the total market cap. This shows that during this period of crypto recovery, Defi assets are definitely leading the way.
Some notable top performing Defi tokens include INST, the newly launched token from Instadapp, whose value has increased by a whopping 62% to reach $5.22, as of July 6. There’s also Alpha Finance’s token ALPHA, which witnessed a 50% increase in value, at $0.758. Other tokens also saw their values shot up, such as MLN, SNX (Synthetix), Aave (AAVE), Linear (LINA), etc.
As for total value locked (TVL), DappRadar reported $81 billion across all platforms. Meanwhile, DeFiLlama, with a bigger list, estimated the total value to be $112 billion.
The top protocol in terms of TVL is Aave with about $8.7 billion locked, according to DappRadar. BSCproject reported that the total amount locked into projects based on Binance Smart Chain is $18.9 billion.
Overall, the TVL metrics are down by 20-30% compared to their peak in mid-May. However, they have shown signs of positive gains for 2 consecutive weeks.
Another interesting development is that the new Defi Index has been tracked on Bloomberg Terminal. This index is attributed to the MVIS CryptoCompare DeFi 20 Index, which covers the top 20 assets in the sector.
Crypto recovery from the slump
Cryptocurrency as a whole has seen some tough times during April and May, during which its value as a whole has been in a slump. Bitcoin has even seen its value plummeted by 50%. This is due to talks of regulations from the US and China, especially with the latter banning all trades concerning Bitcoin. Elon Musk did not help the situation either, with his company Tesla stopped accepting Bitcoin as payments.
However, with recent developments, cryptocurrency is definitely bouncing back. Stay tuned with Bholdus for more news about crypto recovery.