DeFi tokens outperform the bigger markets, Aave, Synthetix surge

84
2
DeFi tokens outperform the bigger markets, Aave, Synthetix surge

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

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

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

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

In April, Memecoins surged and peaked onto the Bitcoin network, as the popularity of the BRC-20 token standard rose, leading to a record-high for the veteran network's on-chain activity. With bullish expectations for Bitcon's third halving in roughly ten months, BTC is up 20% in 10 days, and its market dominance has reached a two-year high of more than 50%.

But many users are now turning their attention back to DeFi, with a report published by DappRadar on June 22 noting a recent resurgence in on-chain activity for many DeFi dApps. The number of unique wallets engaging with Aave is up 28% this month, while Lido is up 17%, and Convex Finance grew by more than a third, according to data from DappRadar.

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

The rise in dApp integrations supporting liquid staking tokens has also led to DeFi receiving a shot in the arm, dubbed LSTfi. Lido's stETH and Rocket Pool's rETH allow holders to accrue staking rewards without running a node or locking up their liquidity.

DeFi integrations offer additional yield to LST holders, making them a sought-after strategy for traders looking to maximize capital efficiency in their staking operations. Dune Analytics has reported that over 8M ETH is locked in LST tokens.