Despite the current bear market in the cryptocurrency market, the decentralized finance (DeFi) ecosystem continues to show power, with the cumulative Total Value Locked (TVL) on major Defi smart contracts remaining above the $60 billion all-time high (ATH).
DeFi Smart Contracts
Despite the prevailing bearish trend in the markets, data from DeFiPulse, a decentralized finance market aggregator, the TVL has sustained a zig-zag trend in dollar terms in the past two days, rising to $61.262 billion on April 16, falling to $58.045 billion on April 17, and returning to its current $60.1 1 billion. Despite the ongoing market downturn, the total value locked in DeFi Smart Contracts remains above $60 billion.
Compound (COMP), a decentralized finance lending protocol, dominates the DeFi industry, contributing $10.94 billion, or 18.20 percent of the TVL. However, according to CoinMarketCap, COMP is down 21.24 percent to $451.35 at the time of publishing. Aave (AAVE), Maker (MKR), and SushiSwap (SUSHI) are among the other DeFi protocols that are down 18.09 percent, 15.62 percent, and 21.52 percent, respectively.
These DeFi token dumps are strikingly similar to Bitcoin’s 11.60 percent price retracement in the last 24 hours, currently trading at $54,298.74.
Current Price Drop is Negated by Bullish Impressions
The wider cryptocurrency industry, in which the decentralized finance ecosystem is a subset, reacts to emotions, which has a big effect on their future prospects. DeFi protocols are at the forefront of the world’s current financial revolution’s dynamic developments. Though product offerings currently range from lending to flash loans and Automated Market Maker (AMM) trading platforms, DeFi service providers are relentless in developing new technologies to keep conventional finance in check.
The Uniswap V3 protocol, a framework that will arguably position the Decentralized exchange (DEX) as one of the most powerful automated money makers serving cryptocurrency enthusiasts today, will be released on May 5 by Uniswap, an AMM. According to estimates, Uniswap’s native cryptocurrency, the UNI tokens, would possibly rocket to a new high above $50 as a result of the expected update.
Source : Bitcoin Warrior.