The recovery for the altcoin market was quick and even faster for DeFi’s top tokens. Market capitalization is currently above the $ 2 trillion level. The aim is to restore the lost market capitalization of the last few weeks. DeFi’s TVL has recovered from its initial decline, based on the graph below.
Based on the graph above, TVL has risen steadily since March 25, 2021 and has bounced back from the recent decline in April 2021. The main projects that contributed to DeFi’s comeback are loan projects – COMP, MKR and AAVE based on market capitalization on DeFiPulse. These three are also the top projects in terms of TVL and rank in the top 10 based on daily returns.
There are other projects that retailers can get involved in while top projects rest. Polygon up over 13% in the last 24 hours is one such project to watch out for. Among other DeFiPulse loan projects, less popular mid-cap projects like CREAM Finance, Idle Finance, and Alpha Homora are currently at the top when it comes to returns. In addition to the top projects, the recent update of the DeFi alliance and the role Coinbase has taken in developing DeFi projects and the ecosystem is a factor that increases DeFi’s TVL and the price of top tokens.
In the past year, this had a positive effect on DeFi as the number of active addresses and the TVL increased across the exchanges.
Based on the graphic above, top projects like MKR, AAVE and SUSHI have contributed to the TVL. There is an expectation that TVL’s rise in the DeFi market will repeat itself and the price for top projects will continue to rise with the support of Allianz. The active addresses have increased more consistently compared to TVL.
The DeFi alliance led to an increase in the number of active addresses. With Coinbase’s participation in Allianz, traders with top DeFi projects in their portfolio can expect double-digit returns in the coming months. The ROI for projects in the top 20 is expected to increase in the current phase of the altcoin cycle.
Sign up for our Newsletter