Crypto.com Weekly DeFi Update (Week 52, 21/12/2020 - 27/12/2020)
1inch launching governance and utility token; SNX in bullish run
Market Recap
This week, the performance of the DeFi market was outshone by Bitcoin’s bullrun. According to CoinGecko, the market capitalization of the top 100 DeFi tokens dipped from the new highs of $20B on Monday to $18.5B on Sunday, and their dominance in the crypto space shrank from 2.97% to 2.60%. According to DeFi Pulse, the total value locked in DeFi also declined from highs of $14B to $13.3B; around 7.3M ETH and 28.1K BTC were locked in DeFi by the end of the week.
Overall, the price index decreased by 4.54%, while the volume index and the volatility index increased by 16.36% and 51.39% respectively.
Spotlight of the Week - 1inch Launched Governance and Utility Token
The decentralized exchange (DEX) aggregator 1inch has launched the new governance and utility token. They introduced an “instant governance” feature, which allows the community to vote for specific protocol settings under the decentralized autonomous organization (DAO) model without any barrier to entry. The 1INCH token will be adopted in all protocols on the 1inch Network. As part of the launch, the platform airdropped 90 million 1INCH tokens to users who had previously traded on 1inch, and the highest recipient of the free token distribution cashed in over $20 million.
Price Index
Top 3 gainers: SNX (+31.06%), NXM (+9.82%), BAL (+0.64%)
Top 3 losers: CRV (-23.39%), COMP (-13.93%), YFI (-10.53%)
The bullish price action of SNX was supported by strong demand as its trading volume soared by 140.53%. The TVL locked in Synthetix also climbed to a new record high of $1.2B. Some analysis attributed SNX’s surge to its new listing on Coinbase Pro and the platform’s overall rise in user activity.
Curve Finance has launched a new liquidity pool for switching euro-backed stablecoins (ref) .
According to Dapp.com, the weekly number of users and transactions in the Compound Protocol plunged by 85.41% and 74.91% respectively (ref).
Volume Index
Top 3 increase: SNX (+140.53%), ZRX (+52.89%), LINK (+32.17%)
Top 3 decrease: NXM (-38.31%), COMP (-28.91%), AAVE (-27.41%)
Volatility Index
Top 3 increase: SNX (+120.34%), MKR (+70.62%), LINK (+62.75%)
Top 3 decrease: BAL (-14.51%), NXM (-5.48%), AAVE (-1.25%)