Crypto.com Weekly DeFi Update (Week 2, 11/01/2020 - 17/01/2020)
CRV price skyrocketed +147%, volume +139%; Top 100 DeFi tokens market cap surpassed $35B
Market Recap
According to CoinGecko, the top 100 DeFi tokens’ market capitalization plunged from $28.8B to $25.4B on Monday, and then it quickly rebounded and came back to hit new highs. At the time of writing, the top 100 DeFi tokens’ market capitalization hit $35.2B. Their dominance in the crypto space sharply increased from 2.74% to 3.45% in a week, thanks to their relatively strong performance against Bitcoin and Ethereum.
According to DeFi Pulse, the total value locked (TVL) in DeFi hit a new all-time high of $24B by the end of the week; around 6.9M ETH and 33.6K BTC were locked in DeFi by the end of the week.
Overall, the price index and the volume index surged by 22.92% and 20.09% respectively, while the volatility index soared by 121.5%.
Check the latest prices on crypto.com/price
Spotlight of the Week
Optimism ‘Soft Launches’ Ethereum-based Scaling Solution With Synthetix
Optimism has launched its Layer 2 scaling solution, the Optimistic Virtual Machine (OVM) on the L2 Optimistic Ethereum mainnet, which aims to solve Ethereum’s congestion and high transaction fees. Their first trial run is held in conjunction with decentralized exchange protocol, Synthetix. According to Optimism, it is the first scaling solution with "full cross-layer porting capabilities for smart contracts without rewriting them", indicating that Synthetix will not need to alter its code to migrate its smart contracts onto OVM.
Price Index
All tokens except MKR (-13.71%) and NXM (-0.59%) increased in price.
Top 3 gainers: CRV (+146.87%), AAVE (+54.72%), REN (+53.16%)
CRV was supported by strong demand as its trading volume soared by 139%. The TVL in Curve Finance also recorded a new all-time high of $2.04B by the time of writing. Its rally could be attributed to several fundamental factors: First, Curve has been launching new trading pairs for niche assets that need more liquid markets; Second, the trading volumes on the protocol have advanced thanks to the introduction of new liquidity pools; Third, Curve was planning an unannounced collaboration with Yearn.finance.
Some analysis explained the bull run in the DeFi tokens as a “re-rating” of DeFi protocols by the market, arguing that the fast-growing user base of most DeFi protocols and the improvement in cash flows helps justify higher valuations.
Volume Index
Top 3 increase: CRV (+139.39%), LINK (+33.21%), SNX (+32.67%)
Top 3 decrease: YFI (-21%), KNC (-14.14%), ZRX (-9.58%)
Volatility Index
All tokens, except for YFI (-28.04%) and ZRX (-8.62%), increased in volatility.
Top 3 increase: BAL (+235.46%), CRV (+200.55%), REN (+148.55%)
Top DeFi News
Optimism ‘Soft Launches’ Ethereum Throughput Solution With DeFi’s Synthetix
Stacks mainnet launch brings smart contracts and DeFi to Bitcoin
Cream Finance leaps into DeFi ‘corporate debt’ with Iron Bank launch
Ethereum-Based Nexus Mutual Expands Its Decentralized ‘Insurance’ to Centralized Exchanges
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