Amid the ongoing dip in the broader cryptocurrency market, the decentralized finance (DeFi) ecosystem is wielding a major resilience as the combined Total Value Locked (TVL) on major smart contracts stays above the $60 billion all-time high (ATH) level.
According to data from DeFiPulse, a decentralized finance market aggregator, the TVL in dollar terms have maintained a zig-zag trend in the past 2 days, rising to $61.262 billion on April 16, down to $58.045 billion on April 17th, and back to its current $60.11 billion, despite the encompassing bearish trend in the markets.
Decentralized finance lending protocol, Compound (COMP) dominates the DeFi market, as it contributes $10.94 billion, representing 18.20% of the TVL. However, at the time of writing, COMP is down 21.24% to $451.35 according to CoinMarketCap. Other DeFi protocols including Aave (AAVE), Maker (MKR), and SushiSwap (SUSHI) are down 18.09%, 15.62%, and 21.52% respectively.
These DeFi token dumps are remarkably reflective of Bitcoin’s 11.60% price retracement in the past 24 hours to be trading at $54,298.74 at the time of writing.
The broader cryptocurrency market of which the decentralized finance ecosystem is a subset responds to sentiments, which goes a long way in impacting their outlook. DeFi protocols are taking the center stage of the dynamic innovations in the ongoing financial revolution in the world. While the product offerings currently range from lending, to flash loans, and Automated Market Maker (AMM) trading platforms, DeFi service providers are unrelenting in churning out new innovations to further give traditional finance a deserving competition.
Uniswap, an AMM is set to roll out its next upgrade, the Uniswap V3 protocol on May 5, a system that will arguably place the Decentralized exchange (DEX) as one of the most efficient automated money makers serving cryptocurrency enthusiasts today. Based on this anticipated upgrade, there are projections that Uniswap’s native cryptocurrency, the UNI tokens will likely soar to a new high above $50 following the upgrade.
Besides Uniswap, other smart contracts are jostling for a sizeable market share through competitive service offerings and collaborative ecosystem governance. All of these help to maintain the underlying positive impressions on the DeFi market, and by extension, the potential price breakouts.
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