Traders anticipate 'DeFi Summer 2.0’ after TVL and token prices rise

  • July 29, 2021
  • 47

A rally in blue-chip DeFi tokens and the sector’s rising total value locked has traders hopeful that a prolonged rally will take place.

Decentralized finance (DeFi) was one of the main factors that pushed the crypto market higher throughout 2021 and to date, platforms like Uniswap (UNI), SushiSwap (SUSHI) and Aave (AAVE) form the bedrock of the sector.

Similar to altcoins, DeFi tokens took a severe beating as Bitcoin price corrected from its $65,800 all-time high, and data from Cointelegraph Markets Pro and TradingView shows that since DeFi index perpetual futures contract hit a low of $5,340 on July 20. Since then, the value of the index has rallied by 45% to $7,682 and this has analysts watching to see if a reversal is in order.

DeFi index perpetual futures contract 1-day chart. Source: TradingView

Total value locked reverses course

In DeFi, the total value locked (TVL) is a platform or the sector as a whole is used to determine the strength and weakness across all platforms. 

Total value locked in DeFi. Source: DeFi Llama

While this metric is still down roughly 30% from its all-time high of $154.91 billion, the metric did increase from $3 billion in July 2020 to $111.04 billion by July 2021.

Out of the top 20 DeFi platforms, the largest percentage growth in TVL over the past seven days was a 68% increase on the Flexa (AMP) protocol and a 38% increase on Lido (LDO).

DeFi tokens rally as user activity surges

Further evidence of the ongoing rebound in the DeFi sector can be found in the rising token values of some of the up-and-coming protocols.

XVS, LUNA, RSR, AMP and KAVA (USDT pairs). 4-hour chart. Source: TradingView

Out of the top 20 DeFi protocols according, LUNA and AMP were the two biggest price gainers over the past seven days with increases of 83% and 64% respectively.

While the daily trading volume seen across decentralized exchanges has remained relatively flat below the $2 billion level for the past month, the price of Uniswap rose by 17.8% and SushiSwap rose by 21.5% between July 21 and July 27 and user activity appears to be on the uptrend. 

Daily DEX volume. Source: Dune Analytics

Continued increases in the number of new users interacting with DeFi protocols is another sign of the growing strength of the sector, with a record 2.091 million unique addresses interacting with a DeFi protocol as of July 27.

Altogether, these developments have caught the attention analysts and investors who are hoping for a 'DeFi Summer 2.0'.

With DeFi tokens in general showing a little strength again from the recent crash, feels like we might get #DeFiSummer 2.0

— danso.eth (@samueldans0) July 6, 2021

Source: Cointelgeraph


The views expressed in this article are the author's own and do not necessarily reflect the view of News-crypto.News-crypto shall not be held liable under any circumstances for any losses, damages or expenses arising from the use of any content mentioned in this article.

The information contained on this website is provided for informational purposes only, with no warranties, or guarantees made as to the accuracy, completeness or timeliness of it. News-crypto assumes no liability or responsibility for any errors or omissions in the information contained on this site. We strongly encourage you to conduct your own research before taking any action.

This site may contain copyrighted material, the use of which has not always been specifically authorized by the copyright owner. If you wish to use the copyrighted material from this site for the purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. Authors or publishers who claim ownership of copyrighted articles reprinted on this website and wish for the content to be removed may email us directly at

If you would like to connect with us about any of the distributed content or other inquiries, please email us at with the relevant documentation.