Glassnode reports that two Ethereum altcoins are at the forefront of a new resurgence in the DeFi sector
Ethereum’s ecosystem is spearheading a fresh revival in the realm of decentralized finance (DeFi), as affirmed by blockchain analytics leader Glassnode.
In a recent analysis, Glassnode revealed that its DeFi index, encompassing the eight most prominent DeFi tokens by market capitalization, has eclipsed Ethereum’s performance over the past two months, marking the first instance since September 2022.
Amid this index, two tokens have surged to the forefront, acting as the chief propellers of this trend: the governance token of the stablecoin Maker (MKR) and the native currency of the smart contract DeFi protocol Compound (COMP).
Glassnode suggests that the remarkable achievements of these two altcoins are potentially tied to recent fundamental advancements within their respective crypto projects.
“A closer examination reveals that these gains are likely intimately connected to novel project fundamentals, rather than broader market developments,” says Glassnode.
On June 28th, Robert Leshner, the founder and CEO of Compound, disclosed his departure from the lending protocol, concurrently announcing a fresh endeavor focused on incorporating regulated finance into blockchain networks. Subsequent to this revelation, the COMP token witnessed a staggering 83% surge within a single week.
Coinciding with this period, MakerDAO activated its Smart Burn Engine—an initiative designed to repurchase MKR tokens from a Uniswap pool using excess DAI stablecoins owned by the protocol. The anticipation of retiring approximately $7 million worth of MKR tokens over the span of a month drove the token’s value to climb by an impressive 43% in the same week.
Furthermore, Messari has also highlighted a resurgence in decentralized exchanges (DEXes), noting a surge in market share compared to centralized counterparts.
“Upon scrutinizing the exchange flows between DEXes and centralized exchanges (CEXes) for the top eight DeFi tokens, a renewed interest in DEX activity becomes evident. The proportion of volume traded on DEXes has surged from 3.75% at the start of June to a current figure of 29.2%, approaching levels observed during the latter half of 2022.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.