DeFi tokens are recovering. Terra has increased by 54% in the last 7 days and Fantom has soared by 21%.
In fact, according to CoinGecko, six of the top 100 companies by market capitalization have increased by more than 50% in the last seven days, and 40 have enjoyed double-digit increases in a week. After falling below $ 100 billion on February 22, the total market capitalization of DeFi will be nearly $ 122 billion.
According to DeFiLlama, Ethereum and Solana rose only 5% from their respective regional lows, while Binance Smart Chains and Polygon rose 3%.
Ethereum’s burning rate has also plummeted, currently averaging 3.68 ETH per minute over the past week, down more than two-thirds from its January high.
So is DeFi activity declining? Or did it move away from the chain that caused the 2021 decentralized financial boom?
One factor is the rate at which the sector’s market capitalization has fallen during the recent recession, with most major tokens losing at least half of their value. In contrast, the total DeFi TVL decreased by 27% from late November to early February.
Terra resumes its rise
Terra has resumed its rise towards the top of the DeFi ranking. The TVL soared to a record high to tag $ 23.5 billion, almost double the level five weeks ago.
The top four protocols in the network have recorded dramatic growth in recent weeks. Terra’s largest protocol anchors increased 63% in 30 days, followed by Lido’s 68% increase and Stader’s 179% increase. However, Anchor and Lido make up 82.5% of the network’s TVL, emphasizing that Terra’s performance is driven by the growth of just a few protocols.
Anchor growth comes after the Luna Foundation Guard (LFG) Infused We will invest $ 450 million in the protocol to continue to subsidize yields of around 20%. This move followed the February 8 governance proposal calling for the Treasury to intervene in the LFG to prevent it from running out by the end of February. Researcher “N3mo” predicted that the anchor would be self-sufficient in November.
Terra’s native LUNA tokens show an increase of 55.9% over 7 days. Tokens currently account for 28.5% of DeFi market capitalization, at approximately $ 34.8 billion, and are ranked the seventh largest crypto asset overall. LUNA is currently only 10% shy, a record high, and has almost completely recovered from the losses of more than 50% in January.
Phantom recovery
Fantom has also grown rapidly recently. Fantom’s TVL is currently $ 1.165 billion, up more than 60% from $ 7.25 billion on February 22nd.
Much of Fantom’s recovery can be attributed to the new DEX and yield farming protocols Solidly and Solidex by Yearn Finance founder Andre Cronje. The two protocols have increased by 500% and 718%, respectively, over the last seven days, adding about $ 4 billion to Fantom’s TVL between them.
Multichain, the network’s top dup, also recorded a strong week with a TVL increase of over 33.5%. Multi-chain currently represents over $ 6 billion in TVL.
Fantom’s FTM tokens are bouncing 20.7% in the midst of remarkable growth. Despite the rise, FTM is down 45.5% from its all-time high in October.
Avalanche is strong
The avalanche has been strong for the past few weeks. Network TVL recovered strongly from its lows of $ 8.1 billion in late January, surpassing $ 10 billion in about a week. Other major networks have seen secondary retracements in February, but avalanches have not fallen below $ 10 billion since early February. Avalanche’s TVL is currently $ 11.2 billion.
Seven of the top 10 protocols in the network have recorded double-digit growth over the last 30 days. Aave leads with $ 3.3 billion after winning 33%, followed by Trader Joe with $ 1.5 billion and 26% profit, and Curve finishes the top three with $ 1.2 billion after winning 26.6% that month. I did. Platypus finance in 5th place also increased by 83% to reach $ 1 billion in TVL.
AVAX tokens are up 20% this week, but down 43.5% from their November highs. It is the 10th largest crypto asset overall.
