Bullish sentiment is rising in the cryptocurrency market on October 20 when Bitcoin's (BTC) soared to a new all-time high of $ 67,000 pushed the digital asset into uncharted territory and investors are closely watching how altcoins and bespoke DeFi tokens react.
The DeFi sector has also benefited from BTC's bullish breakout and today the total locked value (TVL) across all DeFi protocols rose to a new high.
According to data from DeFi Llama, which collects data from DeFi protocols on all major blockchain networks, including Binance Smart Chain (BSC), Avalanche (AVAX), and Wrapped Bitcoin (WBTC), there is now more than $ 233.88 billion in value locked in protocols in the various blockchain networks. Currently, AAVE leads with $ 18.79 billion and Curve is second with $ 17.97 billion in value.
As a result of the Bitcoin price surge, WBTC now ranks fourth in terms of TVL with a value of $ 14.51 billion deployed across the entire DeFi landscape.
The biggest winners on TVL in the last seven days were Trader Joe with an increase of 57.2% and Rari Capital, which experienced an increase of 50.57%. Yield Yak also gained 36.52%.
New users flow to DeFi
In addition to rising token values, the DeFi ecosystem also saw a sharp increase in new user entry and Dune Analytics data shows that 3,591,876 unique wallets have now interacted with at least one DeFi protocol.
Despite the influx of new users, trading volumes on decentralized exchanges (DEX) have remained below the highs set in May and are currently also lower than the activity seen in recent months.
One possible explanation for this has been the increased focus on BTC in recent months, as speculation about when a Bitcoin exchange-traded fund (ETF) would pass and if the price of BTC will exceed $ 100,000 by the end of 2021, the dominated conversations.
Related: Ethereum approaches its own all-time high as ETH price recovers $ 4K
Stablecoin's growth suggests future demand for cryptocurrencies
Another factor contributing to DeFi's growth could be the constant integration and infusion of stablecoins.
There has been an interesting story of increases in the circulating supply of Tether that largely coincides with increases in the price of Bitcoin, and this most recent rally is no exception because on the same day that BTC set a new all-time high. , so did the circulating supply of USDT.
Tether just surpassed the $ 70 billion market cap pic.twitter.com/R0gO3Nk2SB
- Chris (@ChrisBTCbull) October 20, 2021
The importance of stablecoins to the overall DeFi economy is also evidenced by the total value locked into Curve, which is specifically concerned with creating pools of stablecoins for use throughout the ecosystem.
The overall cryptocurrency market capitalization is now $ 2.635 trillion and Bitcoin's dominance rate is 47.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.
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