DeFi sector reaches new ATH while Ethereum climbs back to $4,000
Decentralized finance’s market capitalization has reached a new all-time high of $145.5 billion dollars, according to the TradingView index. The previous ATH was reached back in May when Ethereum’s price was also topping out at the price of $4,170.
According to CoinMarketCap, the largest DeFi project by market capitalization is still Uniswap with a market cap of $18 billion and $5 billion in total value locked in smart contracts. Overall total value locked remains at $134 billion. Previously, U.Today reported that Uniswap is being investigated by the SEC.
Total value locked generally determines the sentiment toward the DeFi market and products from investors and traders. Whenever market participants leave funds in smart contracts, they are leaning toward conserving their funds instead of taking profits and cashing out from the market.
Various DeFi tokens like UNI or AAVE have faced 44 and 33 percent growth respectively in the last month only. Increased transaction volume on the Ethereum network and newly introduced features that came to the network after the London upgrade may greatly affect the current DeFi market.
A decentralized finance network is the set of open source software and frameworks that work together in order to provide users with financial solutions without the involvement of a third party. DeFi platforms like Uniswap allow users to receive passive income by providing liquidity on the market or lending their funds. The DeFi platform mostly utilizes Liquidity Pools in order to step away from the traditional market-making system that uses the services of Market Makers—protocols or individuals that provide liquidity to trading pairs.
Original Source :u.today
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