Metaverse tokens have started to decline as DeFi platforms have seen steady inflows that are lifting their total volume (TVL) to a new all-time high.
The cryptocurrency market was on the rise again as Bitcoin (BTC) recovered above the $57,000 support, lifting the index from the “extreme fear” to the “fear” zone.
Despite all these “fear” and “extreme fear” feelings dominating the market, some crypto markets such as metaverse-related projects and game logs have all experienced breakouts to new all-time highs.
However, the rapid growth in these projects led to concerns about whether the Metaverse and gaming sectors would experience a significant decline in the short term.
The available data show that the decentralized finance (DeFi) sector has gradually gained momentum in recent months. The total value locked in DeFi reached a new ATH of $276.92 billion on November 9, before falling slightly to $265.74 billion at the time of writing.
The rise of TVL comes with the introduction of new protocols in Ethereum (ETH)-compatible networks such as Layer 2 solutions such as Arbitrum and Fantom, which provide users with the ability to conduct transactions in an environment with lower fees.
Increase in the activity of decentralized exchanges (DEXes)
Another thing that is boosting the DeFi economy is the increase in trading volume on decentralized exchanges (DEXs) such as SushiSwap and Uniswap, which have seen a slow increase in activity since the market slump in mid-July.
A decentralized Layer 2 perpetual and feature exchange that surprised the first users in September when it dropped its new governance token to users who had previously delved into the protocol was one of the notable changes in the addition of dYdX’s activity.
Since the launch of dYdX, it has become the first choice for decentralized options trading in the crypto market, and its trading activity surpassed the spot trading activity on Coinbase.
Another thing that drives the DeFi economy is DeFi loans.
Crypto holders lock their tokens as collateral to receive loans that can be used for DeFi and crypto-related activities.
Currently, the market capitalization of the crypto currency is $ 2.63 trillion, and the Bitcoin dominance rate is 42.1%.