Crypto.com Weekly DeFi Update (Week 50, 07/12/2020 - 13/12/2020)
COMP spiked to $145; prices flat; volume and volatility plunged
DeFi Market Recap
The market value of the DeFi space saw a retracement this week. According to CoinGecko, the market capitalization of the top 100 DeFi tokens dipped from the highs of $19B on Tuesday to $17.5B on Sunday, accounting for 3.2% of the crypto space. The total value locked in DeFi reached a record high of $15B on Tuesday and then retraced to $14.3B by the end of the week. Around 7 million ETH and 154K BTC were locked in DeFi by the end of the week.
Overall, the price index decreased by 0.46%, while the volume index and the volatility index respectively plunged by 20.01% and 6.97%.
Spotlight of the Week - MetaMask Launching Enterprise Version for Institutional Investors
ConsenSys has announced that the popular Ethereum wallet MetaMask is going to introduce institutional-grade features for connecting to DeFi protocols and applications (ref). They aim to enable secure access to DeFi applications for institutions such as cryptocurrency funds and custodians. With an intention to combine ease-of-use interfaces with enterprise-level controls and standards, Crypto security startup Curv would be an early adopter integrating their protocol with the new platform (ref).
Price Index
Top 3 gainers: COMP (+10.68%), MKR (+3.12%), NXM (+1.03%)
Top 3 losers: REN (-10.05%), BAL (-7.60%), YFI (-5.40%)
The bullish price action of COMP was supported by strong demand as its trading volumes spiked by 39.91% respectively. Some market participants attributed COMP’s surge to a short squeeze: many traders had recently shorted COMP in the futures market, and they needed to close their positions to avoid greater losses, propelling COMP to higher levels (ref). Besides, as stated by Dapp.com, the number of transactions in Compound soared by more 380% as compared to last week (ref).
Volume Index
All tokens’ volumes, except for COMP (+39.91%) and MKR (+3.40%), plunged.
Top 3 decrease: CRV (-44.69%), YFI (-36.51%), KNC (-27.94%)
According to Dapp.com, the number of users, transactions, and the transaction volume of tokens in Curve plunged by 28.39%, 26.08% and 9.9% as compared to the previous week (ref). In Yearn.Finance, the number of users and the number of transactions fell by 24.61% and 26.08% respectively (ref).
Volatility Index
Top 3 increase: NXM (+56.95%), REN (+52.29%), COMP (+51.96%)
Top 3 decrease: MKR (-39.79%), SNX (-29.97%), KNC (-13.04%)