Bitcoin is breaking one all-time high after the other and a lot has happened in the decentralized finance (DeFi) sector in recent weeks. Several tokens reached new highs and recorded price increases of up to 80 percent. The DeFi monitor.
The DeFi monitor is back and a lot has already happened in the first week of the new year. In the last seven days alone, the capital in DeFi logs has increased from 15.34 billion US dollars to more than 22 billion US dollars today.
As a result, the sector grew over 40 percent in just one week. The dramatic increase underlines the performance of many decentralized finance tokens. As a result, the “ETF token“ DPI, which contains the 10 largest DeFi tokens, has risen by 42.33 percent in the last seven days alone. Synthetix Network (SNX), Aave (AAVE), Uniswap (UNI), Yearn.Finance (YFI) and Maker (MKR) were among the top performers in the index.
One token, in particular, was able to pull the index up particularly strongly this month. We are talking about the lending protocol maker that is one of the oldest projects in the DeFi sector.
Analysts suspect that MKR’s recent price rally is primarily related to the rapid growth of the entire sector. MKR is namely the governance token for both the decentralized lending platform and Maker’s autonomous organization (DAO). With the help of the MKR protocol, it is possible to generate the stablecoin DAI, which is widespread in the DeFi sector. DAI is a stablecoin backed by various cryptocurrencies that is linked to the value of the US dollar.
Since the beginning of this year, in particular, DAI’s market capitalization has increased enormously. At press time, it is worth over $ 1.2 billion. DAI arise when Ethereum users deposit one of many assets into the maker protocol and borrow against this asset in the form of DAI.
The two decentralized exchanges (DEX) UniSwap and SushiSwap were also able to benefit from the hype in the DeFi sector. The trading volume increased dramatically and two new records were set on SushiSwap.
UniSwap’s fork has developed rapidly over the past few months. The trading volume and the liquidity in the log increased enormously. In addition, the DEX applies, at least according to the crypto analysis platform TokenTerminal, currently considered one of the sector’s most undervalued DeFi projects based on the Price to Sales Indicator (P / S).
TokenTerminal measures DeFi logs using standards from the traditional financial world. Of course, this indicator should be viewed with caution, as the revenue generated by decentralized finance protocols cannot be projected 1: 1 onto the token price.
The DEX aggregator 1inch rewarded the loyalty of its users with an airdrop and distributed tokens worth 100 million US dollars. But not everyone was happy. A German DeFi user just missed $ 1.8 million. In the run-up to the airdrop, he created 500 Metamask wallets and interacted with the 1inch protocol to qualify for the airdrop. To do this, he completed a transaction at 1 inch with every single wallet. Unfortunately, none of the wallets received authorization for the airdrop, as it just fell short of the qualification requirements.
I addition to @timoharings has self-reported 8,000 US dollars to Ethereum transaction fees paid to transactions with 500 Metamask Wallets on 1inch complete. He expected a return of 250,000 US dollars for several hours, but the 1-inch tokens would have been worth an equivalent of 1.8 million US dollars.