DeFi is Showing Signs of Life Despite Drop in Funds Locked in Uniswap 15

DeFi is Showing Signs of Life Despite Drop in Funds Locked in Uniswap

Quick take:

  • According to Coinmetrics, the combined market cap of popular DeFi tokens has increased with Bitcoin’s recent surge
  • The total value locked in DeFi is still above $13 Billion
  • The total value locked in UniSwap has exhibited a sharp decline since it ended its token rewards program

The DeFi realm of the crypto-verse is once again showing signs of life. According to a report by the team at CoinMetrics, the combined market cap of popular DeFi tokens has seen a turn around following the recent market surge by Bitcoin and Ethereum.

…DeFi market cap has started to turn back around. After reaching a local low on November 4th, DeFi market cap has returned back to late September levels following a surge from BTC and ETH. If BTC and ETH continue to rise, DeFi could be a big benefactor.

The increased value in the DeFi market cap can also be visualized via the following chart, also from the report by the team at Coinmetrics.

DeFi is Showing Signs of Life Despite Drop in Funds Locked in Uniswap 16
Source: Coinmetrics

Uniswap Experiences a Drop in Total Value Locked

To note is that the resurgence of DeFi tokens has occurred as the total value locked in UniSwap, experienced a significant drop since the protocol halted its token rewards program two days ago. According to the team at DappRadar, the total value locked has dropped by 45% since its all-time high of $3.3 Billion. The latter value was experienced three days ago.

The team at DappRadar also highlighted a significant drop in Uniswap’s liquidity as explained below.

Uniswap’s liquidity plunges 40% after the decentralized exchange ended its token rewards program on Monday afternoon. Uniswap’s #TVL is down a total of 45% since having an all-time high of $3.3B just 3 days ago. It now sits at $1.76B.

At the time of writing, the total value locked on Uniswap has further dropped to $1.33 Billion partly due to both Bitcoin and Ethereum suffering significant losses after today’s massive crypto market correction.