Decentralized Finance (DeFi) Sees Tremendous Surge in Volume, Akin to 2021’s Strong Market Trend

Sunday, 17 March 2024, 13:02
The total value locked (TVL) and exchanged volume in DeFi have experienced significant growth, with daily volume surpassing $10 billion recently. The post highlights the importance of analyzing consistent volume growth for identifying trends and market momentum, alongside the risk of relying on false technical indicators when volume spikes irregularly. Data from DefiLlama indicates a robust momentum in decentralized exchanges, suggesting a promising rally in the DeFi ecosystem with increased capital flow among protocols.
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Decentralized Finance (DeFi) Sees Tremendous Surge in Volume, Akin to 2021’s Strong Market Trend

DeFi Volume Growth Resembles 2021’s Bull Market

Decentralized Finance (DeFi) has witnessed substantial growth in recent years, as seen through total value locked (TVL) and exchanged volume. The daily volume in DeFi has surged to over $10 billion, reminiscent of the 2021 bull market.

Daily Volume Surpasses $10 Billion

  • Current daily exchange volume in DeFi stands at $10.95 billion.
  • The 7-day volume has hit $70.784 billion, reflecting a 7.85% increase.
Interestingly, the volume growth emulates trends seen in early 2021 and the peak of the last market cycle in late 2021.

Such consistent growth in volume hints at DeFi attracting substantial capital from investors and traders, with decentralized exchanges gaining dominance over centralized platforms.

$100 Billion in Total Value Locked

  • DeFi’s total value locked fluctuates around $100 billion.
  • The 24-hour volume accounts for over 10% of the $95 billion TVL on March 17.
Investors should exercise caution and understand the risks associated with DeFi and decentralized exchanges to mitigate potential losses.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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