Cryptocurrency sentiment rose again on November 29, when the recent fall in the Crypto Fear and Greed indicator improved after Bitcoin (BTC) returned above the $ 57,000 support level, sending the index higher into the “fear zone”.
Fear and Greed Index. Source: Alternative.me
Despite the general feeling of “fear” and “extreme fear” that has gripped the market since the index began to fall on November 16, there have been breakthroughs in many sub-sectors of the cryptocurrency market, including projects related to metaverse protocols and games. to new historical heights.
The rapid growth seen in these projects has raised some concerns that the metaverse and gaming segment may see a major decline in the short term if traders make a profit and wait for more stable price levels, which makes many wonder which market segment it will be in. Next to see bullish momentum and higher prices.
A deep dive into the available data reveals that the decentralized financial segment (DeFi) in the market has steadily gained momentum in recent months as the total value of DeFi rose to a new all-time high of $ 276.92 billion in November. 9 and currently stands at $ 265.74 billion.
Total cost unlocked in DeFi. Source: Devi Lama
The increase in TVL comes as new protocols continue to appear on Ethereum (ETH) -compatible networks such as Fantom and Layer 2 solutions such as Arbitrum, which gives users the opportunity to shop in a low-fee environment.
About it: Ethereum Layer 2 TVL reached a record level
DEX activity is increasing
Another sign that DeFi’s activity is on the rise is the increase in trading volumes on decentralized exchanges (DEX) such as Uniswap and SushiSwap, which have increased slowly since reaching the bottom in mid-July.
Total trading volume on decentralized exchanges. Source: Token Terminal
As you can see in the chart above, the volume of the leading DEX exchanges has consistently declined to levels similar to those seen in the beef market in the first half of 2021.
One of the most notable changes was the addition of activity from dYdX, a permanent and future-proof Tier 2 decentralized exchange that surprised early users in September when it sent a new control token to users who had previously worked on the protocol.
Since its launch, dYdX has become a popular choice for decentralized options trading in the cryptocurrency market, and at one point, trading activity surpassed spot trading on the US cryptocurrency exchange Coinbase.
The latest evidence that DeFi’s activity is growing along with fundamental market sentiment can be found in the volume of loans from leading lending platforms, which is now approaching a record high of $ 35 billion.
The volume of borrowing on credit platforms. Source: Token Terminal
This indicates that cryptocurrency traders are blocking their tokens as collateral for loans that can be used for further use in crypto- and DeFi-related activities, and suggests that many expect the beef market to continue as the ecosystem prepares for closure in 2021. Get 2022 before warm start.
The total market value of cryptocurrency is now 2.63 trillion dollars, and the bitcoin dominance is 42.1%.