DeFi
DeFi TVL soars 72% to $94 billion this year: Binance
The DeFi space saw capital inflows in the first six months of the year, with the total value locked (TVL) surging to $94.1 billion, an increase of 72.8%. This growth is being seen across almost all sectors of the digital asset market as sentiments continue to soar. The cryptocurrency market saw huge institutional inflows following the approval of Bitcoin spot ETFs.
DeFi Activity Spikes
Decentralized finance has seen an increase in volumes this year, with the market as a whole seeing gains. A recent market update from the cryptocurrency exchange Binance TVL revenue increased from $54.4 billion to $94.1 billion, representing 72% growth over the past six months.
“This growth has benefited almost all areas of DeFi, including mainstream and niche markets, fostering the emergence of various protocols and providing on-chain access channels for previously inaccessible financial primitives… The Web3 gaming sector had a strong first quarter, but in the second quarter, the market capitalization of gaming project tokens and other altcoin markets fell sharply.
The broader market reached a market cap of $2.27 trillion, up 37% year-to-date. In Q1 2024, the market cap exceeded $2.5 trillion, up 60% from 2023 after renewed investor interest. According to the report, the last six months have been an airdrop season in Tier 2 channels. Incentive programs in particular have driven TVL to $43 billion, up 90%.
Stablecoins have also seen a similar trajectory, remaining 14% off their 2022 peak before Terra’s collapse. However, non-fungible tokens (NFTs) remain volatile as sales have plummeted.
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Institutional investors drive growth
The activities of centralized market participants in the cryptocurrency market have increased the prices and activity of crypto assets and DeFi respectively. The approval of the spot Bitcoin ETF The US SEC has created a new investment window for traditional players to increase their exposure to Bitcoin.
Due to the billions invested and the expected increases,
BTC Price Bitcoin hit an all-time high above $73,000 before correcting. Currently, Bitcoin is trading at $67,235, up 6.5% in the last seven days.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in emerging technologies and has an eye for breaking news. Staying abreast of trends, David has reported on several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Outside of financial markets, David enjoys cycling and horse riding.