Several DeFi tokens are hitting all-time highs on a daily basis as the total value of assets staked in the space nears $30 billion.
The Moon Isn’t High Enough
As a result, Total Value Locked (TVL) for the entire DeFi space rose from just over $21 billion at the start of the week, to $26.9 billion at press time.
This represents an increase of over 27.6% in value. TVL is a measure of the value of all the assets staked in a DeFi project. It provides a good indication of the support for a particular project.
AAVE rose above the key level of $300 for the first time in its history. It currently has a market cap of over $3.7 billion and is DeFi’s second largest project by TVL.
Both SUSHI and ALPHA also broke records, rising to $10 and $2.40 respectively.
The huge growth comes during a week that saw a number of significant cryptocurrency and traditional market events. This included the GameStop (GME) rally, Dogecoin (DOGE) climbing over 1000% and Elon Musk changing his Twitter bio to “#bitcoin” and thus triggering a Bitcoin rally.
The release, set to occur on Feb. 1, will upgrade the Homora product to include leveraged staking, a first for the DeFi space.
Development has also been happening at speed for SushiSwap’s Bentobox, which aims to simplify the decentralized exchange (DEX) swapping mechanism.
DeFi’s most popular developer, Andre Cronje, returned to Twitter this week with a series of updates on developments in yearn.finance.
These include the integration of long/short positions in Yearn vaults, as well as a job advertisement for a user interface designer.
The Realignment is Happening
Towards the end of last year, many in the DeFi space proclaimed the so-called “great re-alignment”, which, according to them, sees DeFi attain its true value.
The facts seemingly now support this ‘foretelling’ as the DeFi space continues to grow, both in value (price and TVL) and use.
While many await the alt-season that occurred in 2017, these DeFi-ers seem to have coined and created a new crypto-season: DeFi season.