DeFi Sector Heats Up Amid Broad Market Rally
Total Value Locked In DeFi Protocols Hits 3-Month High Above $40B
By: yyctrader • Loading...
Markets![DeFi Sector Heats Up Amid Broad Market Rally](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F986daaf8481c418bc65aa4074728c26903d66933-828x467.webp&w=828&q=75)
While crypto investors remain fixated on the possibility of a spot Bitcoin ETF launching sooner rather than later, the decentralized finance sector has staged a quiet rally, with many tokens outperforming both BTC and ETH.
The market capitalization of DeFi assets is up 15% to $49.4B, a three-month high. Similarly, total value locked (TVL), a measure of the amount of assets deposited in DeFi protocols, has crossed $40B for the first time since August.
![DeFi TVL chart](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F5e489e1f52d0afb278585b79779645f78652f770-691x308.jpg&w=828&q=100)
In terms of deposits, decentralized exchange Sushi, cross-chain protocol Thorchain, and DAI-focused lender Spark outperformed in October, with TVL up 32%, 25% and 22%, respectively, over the past week alone, according to Defillama.
Bitcoin Hits 17-Month High
It’s been a stellar week for BTC, with the world’s most valuable cryptocurrency up 7% in the last 24 hours and 18% in the past week. The action has been driven by speculation that BlackRock’s spot Bitcoin ETF may be around the corner.
Bitcoin rallied above $35,000 for the first time since May 2022 before paring some gains. According to a chart from David Lawant of FalconX, yesterday’s short liquidations were the biggest in the past year.
![Bitcoin Perp Liquidations](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F3797d1742e904448a319cb72f1fb4bd10b6e9fef-900x800.jpg&w=828&q=100)
Top Gainers
Kwenta, a perpetuals trading protocol operating on Optimism, an Ethereum Layer 2 network, saw its token surge 43% in the past week.
![KWENTA Price chart](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F8475e9990767ecdc477754b52be24b40ca7b3a4f-807x400.jpg&w=828&q=100)
Meanwhile, Thorchain’s RUNE and oracle provider Chainlink’s LINK are up nearly 40%.
DeFi stalwarts AAVE and LIDO have rallied 32% and 22%, respectively, and DYDX is up 29% as the perpetuals exchange gets closer to launching its own Cosmos-based appchain.
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