Crypto.com Weekly DeFi Update (Week 8, 22/02/2021 - 28/02/2021)
Top 100 DeFi tokens’ market cap plunged to $63.5B; TVL backed to $36.0B
Market Recap
According to CoinGecko, the top 100 DeFi tokens’ market capitalization pulled back from the highs of $80.6B on Monday to the lows of $63.5B on Sunday, losing more than 20% in a week. Their dominance declined to 4.5% at the time of writing.
According to DeFi Pulse, the total value locked (TVL) recorded new highs of $45.0B on Monday, then dropped to $36.6B on Sunday, losing around 19% during this week. At the time of writing, 8.4M ETH and 46.1K BTC were locked in DeFi respectively.
Overall, the price index and volume index plunged by 30.34% and 13.80%, while the volatility index surged by 49.63%.
Check the latest prices on crypto.com/price
Spotlight of the Week
Aave & Balancer Partner to Build Hybrid AMM Liquidity Pool & Lending Products
The lending platform Aave and AMM Balancer has partnered to allow unused liquidity in Balancer v2 pools to earn yields on Aave. It is the first asset manager for Balancer v2 as any pool can utilize their deposited tokens to work in Aave as long as it’s not being used as swap liquidity. This partnership can largely increase the capital efficiency and depositor yields for the AMM: the depositors will be able to earn trading fees, yield farming from Balancer v2, as well as lending interests from Aave.
Price Index
All tokens decreased in price.
Top 3 losers: CRV (-41.08%), REN (-37.02%), YFI (-35.33%)
Following the Bitcoin bears, most DeFi tokens, including CRV, experienced a decline this week. According to CoinGecko, CRV started a downside correction on Monday from $3.01 in the morning to $2.11 in the evening, losing around 30% within one day. The TVL of Curve Finance reached an all time high of $4.5B on Tuesday, then declined to $3.9B on Sunday according to DeFi Pulse.
REN reached its all-time-high of $1.80 last week and then pulled back to less than $1.00 this Sunday according to CoinGecko. Although Ren has successfully completed some developments during February, it cannot avoid being influenced by the downside correction of the whole DeFi sector.
The TVL of yearn.finance plunged from $497M on Tuesday to $334M on Wednesday, decreasing more than 30% for one day according to DeFi Pulse. Analysts predict the odds of sell-off for FYI have increased considerably.
Volume Index
All tokens decreased in volume.
Top 3 decrease: NXM (-55.39%), REN (-38.58%), UMA (-34.73%)
Volatility Index
Top 3 increase: YFI (+257.00%), BAL (+203.49%), COMP (+160.22%)
Top 3 decrease: UNI (-53.47%), REN (-49.22%), CRV (-25.18%)
Top DeFi News
Aave and Balancer announce hybrid AMM liquidity pool & lending product
Brave unveils plans for DEX aggregator and NFT wallet in next browser
Transaction batching protocol Furucombo suffers $14 million “evil contract” hack
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