Crypto.com Weekly DeFi Update (Week 3, 18/01/2021 - 24/01/2021)
Top 100 DeFi tokens’ market cap surpassed $45.4B; TVL in DeFi hit $26.0B
Market Recap
According to CoinGecko, the top 100 DeFi tokens’ market capitalization dropped from $41.1B to $34.9B on Thursday, before recording a new high of $45.4B by the end of the week. Their dominance in the crypto space also reached a local high of 4.64%, thanks to altcoins’ relatively strong performance against Bitcoin and Ethereum.
According to DeFi Pulse, the total value locked (TVL) in DeFi slumped from highs of $25.0B to $21.5B on Thursday as ETH and BTC fell, then rebounded and reached a new all-time high of $26.0B at the time of writing.
Overall, the price index and the volume index respectively surged by 27.42% and 45.10%, while the volatility index plunged by 57.26%. There is a change in the index constituents: we have added UMA and LRC, and removed ZRX.
Check the latest prices on crypto.com/price
Spotlight of the Week
Kyber Network planning for a massive DEX upgrade
Kyber Network, a DeFi exchange for Ethereum-based tokens, announced plans for the upgrade to Kyber 3.0. Kyber Network is aiming to expand the network of liquidity markets with its Kyber 3.0 upgrade so as to compete with other exchanges such as Uniswap. In particular, they will launch DeFi’s first automated Dynamic Market Maker (DMM), which aims to fix capital inefficiency and impermanent loss commonly found in other automated market makers. They are also planning a governance vote on changes that would add greater utility to its native KNC token. The Kyber 3.0 rollout is expected to be completed by the end of Q3 2021.
Price Index
Top 3 gainers: NXM (+47.23%), CRV (+42.27%), UNI (+38.54%)
Top 3 losers: YFI (-11.34%), MKR (-4.71%), REN (-4.03%)
The TVL locked in Nexus Mutual reached a new all-time high of $234M by the time of writing. Nexus Mutual expanded its custody to cover centralized exchanges.
The continuing bull run of CRV could be supported by several fundamental factors. First, Curve made an update on their collaboration with Yearn.finance, which would allow permissionless pool creations in their protocol. Second, the United States Office of the Comptroller of the Currency (OCC) had announced that banks would soon be able to utilize blockchain platforms to conduct stablecoin transactions and provide custody services for those assets. This friendly regulatory development would potentially raise the market demand for the Curve DAO platform. Third, Curve.finance had seen a steady improvement in the total volume per day transacted and the TVL locked in it also reached a new high of $2.47B at the time of writing.
Uniswap led the decentralized exchanges as it was approaching a daily trading volume of $1 billion a day for the month of January. Uniswap’s TVL also recorded a new high of $3.23B by the time of writing.
Volume Index
Top 3 increase: UMA (+103.39%), CRV (+96.34%), NXM (+68.22%)
Top 3 decrease: MKR (-42.06%), SNX (-35.81%), COMP (-25.31%)
Volatility Index
All tokens decreased in volatility.
Top 3 decrease: MKR (-67.02%), SNX (-59.88%), CRV (-57.56%)
Top DeFi News
Kyber plans to become a hub for DeFi with massive DEX upgrade
Perpetual Protocol emerges as sixth-largest DEX after just one month
Thank you for reading! We hope you find our Weekly DeFi Update enlightening!
Hungry for more? Visit our Research Hub and University to access other insightful crypto research!
Share with a friend if you like our email!