DeFi Sector Sees Increased Inflows Despite Market Sell-Off
This week, the cryptocurrency market experienced a sell-off driven by tariff concerns. Key highlights include:
- BTC traded below $80K.
- ETH reached a two-year low of $1,432.
- Total value locked (TVL) in DeFi dropped to $95 billion, its lowest since November.
Despite this, DeFi showed resilience with minimal outflows. Key metrics performed better than ETH prices:
- TVL on Aave rose to 11.02 million ETH ($17.32 billion), up from 3 million ETH at the start of the year.
- Sky's TVL increased from 1.85 million ETH to 4.63 million ETH.
- Lending protocol Spark saw a boost of 1 million ETH in deposits earlier this month.
The influx into DeFi is attributed to traders seeking stability through delta-neutral strategies, shifting to stablecoins for lending and borrowing. Decentralized exchange volumes remained steady, reaching $11.8 billion on Monday and $9.8 billion on Tuesday, compared to last week's volumes which did not exceed $7 billion.