The decentralized economy and various platforms providing investment services have been a topic of conversation in the cryptocurrency sector for several months now, and this has resulted in investors making impressive profits from some of DeFi’s best tokens like Uniswaps UNI and AAVE.

Rapid prices and the annual return of 1,000% of deposited tokens raised investor applause as the market rallied, but the recent selling pressure seen on the Bitcoin (BTC) price fell below $ 45,000, indicating that the longest pilots often fall the fastest when Traders are rushing out. From their site and fix your earnings.

On February 22nd, Bitcoin’s price entered a phase of a sharp correction, as the largest digital asset tumbled more than 20% from its all-time high of $ 58,274. When that happened, most altcoins also underwent two-digit adjustments, with DeFi tokens like PancakeSwap’s CAKE down 55%.

The overall DeFi reading shows the resistance
Total Value Locked Up (TVL) on DeFi platforms also became noticeable after modifications to Bitcoin and Altcoins. DeFi Llama data shows that TVL cumulative across all DeFi platforms fell from $ 64.89 billion to $ 54.22 billion on February 24. Cointelegraph also reported that the correction this week led to the second largest lending day for DeFi in history.

The decline in TVL is the result of a token value falling rather than the protocol expiring, indicating that token holders remain committed to further expanding decentralized financing and that current returns continue to drive investors to continue.

Market analysis shows that despite the recent liquidation of Bitcoin and altcoins of $ 5.8 billion, the bulls remain optimistic and see this price drop as a sign of a healthy market.

The same goes for the DeFi sector, which has shown a strong bullish trend since the start of the year. The increase in DEX size and the rise in TVL show that DeFi is still in its early stages of growth, and while reactions can be expected, the overall trend is positive as institutional and private investors are increasingly exposed to this new asset class.

Source: CoinTelegraph

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