{"id":583455,"date":"2023-08-02T15:07:34","date_gmt":"2023-08-02T14:07:34","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=583455"},"modified":"2023-08-02T15:07:34","modified_gmt":"2023-08-02T14:07:34","slug":"comp-and-mkr-lead-altcoin-rally-as-regulatory-uncertainty-rallies","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/comp-and-mkr-lead-altcoin-rally-as-regulatory-uncertainty-rallies\/","title":{"rendered":"COMP and MKR lead altcoin rally as regulatory uncertainty rallies"},"content":{"rendered":"

Despite increased regulatory activity, DeFi index price, led by Compound [COMP] and MakerDAO [MKR], has rallied by 56% since 11 June, Glassnode found in a new <\/span>report<\/span><\/a>. <\/span><\/p>\n

Glassnode\u2019s DeFi price index tracks the performance of the top eight DeFi tokens by market capitalization. With other altcoins outperforming leading altcoin Ethereum [ETH], mostly propelled Ripple\u2019s [XRP] partial win over the U.S. SEC, Glassnode noted:<\/span><\/p>\n

\u201cOur DeFi index\u2026has established an almost two-month-long uptrend relative to ETH. This is the first outperformance since September 2022 and with very similar performance thus far.\u201d<\/span><\/p><\/blockquote>\n

\"\"
Source: Glassnode<\/figcaption><\/figure>\n

COMP and MKR take the lead<\/b><\/h4>\n

Per the report, COMP and MKR \u201cstand out as primary drivers of this trend.\u201d Regarding Compound, its governance token COMP experienced an 83% uptick a week after the protocol\u2019s founder and CEO Robert Leshner, revealed his exit from the lending protocol and announced the launch of the Superstate project. <\/span><\/p>\n

Around the same period, MakerDAO introduced its <\/span>Smart Burn Engine<\/span><\/a>, which drove up MKR\u2019s value, Glassnode found. <\/span>The MakerDAO Smart Burn Engine is a smart contract system that allocates excess DAI to purchase MKR, increasing the on-chain liquidity of MKR over time. This could remove $7 million worth of MKR from circulation in 30 days, increase the token’s demand and drive its price. Following the Smart Burn Engine\u2019s implementation, MKR\u2019s value climbed by 43% a week after. <\/span><\/p>\n

\"\"
Source: Glassnode<\/figcaption><\/figure>\n

DEXes saw increased activity as well<\/b><\/h4>\n

Apart from the jump in the value of DeFi tokens, the past few weeks have also been marked by a jump in network activity across decentralized exchanges. According to Glassnode:<\/span><\/p>\n

\u201cThe relative share of volume traded on DEXs has increased from 3.75% at the beginning of June to 29.2% today, close to the highs seen during the second half of 2022.\u201d<\/span><\/p><\/blockquote>\n

\"\"
Source: Glassnode<\/figcaption><\/figure>\n

As noted by Glassnode, the rise in DEX volume was partly due to increased trading activity on Uniswap across Layer 2 platforms and the surge in network activity from both human traders and Sandwich bots.<\/span><\/p>\n

While Uniswap trading volume on Ethereum remained low, Glassnode noted:<\/span><\/p>\n

\u201cthat an appreciable portion of trading has shifted from the Ethereum mainnet across to Arbitrum, attracting up to 32% of volume in March. This trend has remained elevated in June and July, which provides a degree of reasoning for the lower volume on Ethereum we observed above.\u201d<\/span><\/p><\/blockquote>\n

Regarding human and Sandwich bots trading activity on Uniswap, Glassnode noted that while human trading volume has risen by 30% since the beginning of July, Sandwich bots have contributed over 60% of the daily trading volume on the DEX.<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite increased regulatory activity, DeFi index price, led by Compound [COMP] and MakerDAO [MKR], has rallied by 56% since 11 June, Glassnode found in a new report.  Glassnode\u2019s DeFi price index tracks the performance of the top eight DeFi tokens by market capitalization. With other altcoins outperforming leading altcoin Ethereum [ETH], mostly propelled Ripple\u2019s [XRP] partial win over the U.S. SEC, Glassnode noted: \u201cOur DeFi index\u2026has established an almost two-month-long uptrend relative to ETH. This is the first outperformance since […]<\/p>\n","protected":false},"author":63,"featured_media":583462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[7575],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583455"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/63"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=583455"}],"version-history":[{"count":2,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583455\/revisions"}],"predecessor-version":[{"id":583472,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583455\/revisions\/583472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/583462"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=583455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=583455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=583455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}