The month of March was a story of two halves for the cryptocurrency market and year-to-date weakness began to fade. Bitcoins (Bitcoin) strong move above $40,000 is helping lift sentiment across the sector and DeFi tokens are also starting to move higher.
Data from cryptocurrency market research firm Messari shows that the majority of the top tokens in the DeFi sector have posted double-digit gains over the past 30 days, led by THORChain (RUNE), which is up 199.81%, and Aave (AAVE), whose price has increased by 53.95%
Here is an overview of the state of DeFi as the sector attempts to return to its former glory and start a new bull run.
The value locked in DeFi is in an uptrend
Some of the best evidence of DeFi’s ongoing comeback can be found by looking at the total locked value (TVL) across the sector, which is now reported at $228.05 billion Data by Defi Llama.
Despite the fact that many tokens remain well below their all-time highs, the TVL for the DeFi sector is only $28 billion down from its previous peak of $256.62 billion. This indicates that the DeFi ecosystem has continued to expand and increase in value as new protocols and blockchain networks have been introduced in recent months.
Data by Dune Analytics shows that the total number of DeFi users has steadily increased throughout 2022 and is currently at a record high of 4,562,318 unique wallet addresses.
NFT marketplaces overtake DEXes
One sub-sector of the DeFi market that has yet to see a real reversal of its downtrend has been the level of activity on decentralized exchanges (DEXes). for now at its lowest level since July 2021.
While it seems like traders haven’t been too eager to swap tokens in the current environment, data from Token Terminal shows that they have been active in other areas of the market, with revenue from the top apps on the uptrend since the bottom were generated February.
The total cryptocurrency market cap is now $2.151 trillion and Bitcoin’s dominance rate is 41.7%.
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https://cointelegraph.com/news/defi-sector-tvl-rises-as-investors-return-to-a-bullish-crypto-market The DeFi sector’s TVL is rising as investors return to a bullish crypto market