DeFi tokens outperform the broader markets, with their native tokens

DeFi tokens outperform the broader markets, with their native tokens

Many top DeFi tokens are outperforming the broader markets, with the native tokens of Uniswap, Aave, Compound, and Synthetix posting double-digit gains over the past 24 hours.

DeFi assets went on a tear Saturday, while each of the top ten crypto assets by capitalization traded within a 2% range, according to CoinGecko. AAVE and COMP surged by an enormous 30%, while SNX rallied 19%, and UNI gained 12%. Today, Curve, dYdX and PancakeSwap were up about 7%.

The combined total value locked in DeFi protocols and the market cap of DeFi assets are up more than 10% in the past ten days.

For much of 2023, DeFi tokens were underperformed, with obscure memecoins, and then Bitcoin capturing the imagination of traders in recent months.

In April, Memecoins resurgence and surged into the Bitcoin network with the growing popularity of the BRC-20 token standard, propelling a record-high for the veteran network's on-chain activity. With its market dominance exceeding 50 percent, Bitcon's third halving in roughly ten months is up 20% in 10 days and its market dominance has reached a record high of more than 50% in a two-year period.

But many users are now turning their attention to DeFi, with a recent report on DeFi noting a recent resurgence in on-chain activity for many DeFi dApps. This month, DappRadar saw a rise in the number of unique wallets engaging with Aave, while Lido is up 17%, and Convex Finance grew by more than a third.

Active monthly users also doubled on Pendle, increased 30 percent on PoolTogether, and jumped 17% for Polygon's PoS Chain bridge.

DeFi has also received a shot in the arm from dApp integrations supporting liquid staking tokens, dubbed LSTfi. With liquid staking tokens like Lido stETH and Rocket Pool's rETH, users can accrue staking rewards without needing to run a node or lock up their liquidity.

DeFi integrations offer additional sources of yield to LST holders, making them a more popular strategy for traders seeking to maximize capital efficiency of their staking exposure. Dune Analytics says more than 8M ETH is locked in LST tokens that are based on Ethereum.