It won’t be mistaken to say the latest crypto market crash created a sense of the mess in the DeFi (Decentralized Finance) space too when the token plunged by 50%.
Almost DeFi tokens indicated approx. 97% loss in the past seven days and huge sell-offs were also quite visible which nearly erased the gains made earlier in August, the highly volatile month. However, the rough week is getting over and in the past 24(hrs) the DeFi market rebounded by 19%.
According to the cryptocurrency market data displayer Messari, the DeFi bubble is not popped rather getting into the shape again despite facing a drop in 32 of 34 markets in the past week.
In the last 24 (hrs), Eth is up by almost 11% and the rest of the DeFi tokens are putting up gains between 3% and 39.6%.
The data on Coingecko shows ERC-20 token Chainlink (Link) is ranking on top #1 with a Link price is up by 7.3% with a 24-hour trading volume of $1,322,842,095.
On Messari.io the charts showing yearn.finance (YFI +32.54% with a current price $29,862.61) is on top under change vs USD (24H) followed by Swerve (SWRV +24.95%), Aave (LEND +24.40%) , Ren (REN +23.66%), Loopring (LRC +21.23%), and Synthetix (SNX +17.92%) out of 37 hot assets.
Interestingly, earlier, when most of the DeFi token busted, two tokens namely PowerPool (CVP) and SushiSwap (SUSHI) posting seven-day price gains.
Nevertheless, the daily returns posted by yearn.finance is remarkable and somehow fuelling the DeFi marketspace.
Tether Playing Pivotal Role in DeFi
Recently, Tether (USDt) eclipsed bitcoin and PayPal for average daily transfer value, according to a recent report by CoinMetrics, while the market capitalization of USDt has mushroomed more than six-fold from about US$2 billion in February 2019 to reach US$13 billion.
Also, Tether (USDt) has been increasingly adopted by popular DeFi applications as the protocol is committed to providing support for the growth of DeFi such as Uniswap and Curve. As such, USDt is now taking more and more of the market share of on-chain transfers.
This surge in demand for USDt is indicative of its pivotal role in the digital asset space and demonstrative of pent up demand for a technologically innovative alternative to archaic payment systems.
On Aave, USDt is enabling a stream of innovative DeFi financing products such as Flash Loans. Within Compound, USDt has also emerged as one of the most liquid markets.
“The fast settlement, deep liquidity, low fees, and stable price associated with USDt have created unique opportunities for lending products, such as the Aave and Compound protocols, with USDt offering some of the best and most enticing yields on these platforms. With Tether’s support to DeFi, it has become the first stablecoin to leverage the innovation released in Algorand 2.0 and provide instant confirmation, micropayments, and automatic wallet support. Tether will also continue supporting Layer-2 scaling solutions to reduce congestion on Ethereum. For example, Tether recently went live on the OMG Network transport layer, and will soon be adding support for ZK-Rollups.” Said, Paolo Ardoino, CTO of Tether.