DeFi Report January 2024!

The post DeFi Report January 2024! appeared first on Coinpedia Fintech News

The crypto industry started the year 2024 positively, as the market experienced a strong uptrend during the first week. Following the approval of the Spot Bitcoin ETF, the market witnessed a short surge, after which the crypto space has been experiencing a significant correction in value.

Bitcoin and Major altcoins had been moving sideways for over a week, suggesting a cool-off in the price action. With the approval of the Spot ETF trading, the crypto industry has successfully achieved its first milestone this year. With Bitcoin halving around the corner, this year is said to be a crucial one.

On the other hand, the DeFi category has displayed a minor change in its valuation. The Total Value at the time of writing showed above $120 Billion, a +2.5% increase Month-On-Month (MOM). Further, the total number of users has also experienced a decent increase.

Top Tokens from the category have recorded minor changes, indicating a switch of interest among the investors. Newer chains have experienced a massive price action this month, indicating the rising competition for innovation and technology in the industry.

Top DeFi Categories!

The Decentralized Financial (DeFi) system is expected to gain significant traction this year as major events are lined up in the coming months. The primary target is assumed to be to achieve the $150 Billion mark within this year.

Chart: Defillama

Despite the minor change in the valuation of the category, it has recorded significant fluctuations in the chart, highlighting a mixed sentiment in the crypto space. Further, the article includes a detailed explanation of the top three sub-parts of this respective category.

Dexes:

Dexes has displayed stable growth this month as it has added 4.29% to its valuation alone, a change from $13.867 Billion at the month’s start to $14.462 Billion. This category has recorded significant fluctuations this month, indicating a rise in investors’ interest.

Chart: Defillama

The category leaders, Uniswap and Curve DEX, performed well by adding 11.96% and 10.72% to their respective portfolios this month. Further, PancakeSwap has displayed a negative trend by recording a fall of approximately 5% in valuation.

Lending:

Lending plays a vital role in the DeFi ecosystem as it accounts for 1/6th of the valuation of the Total Value Locked (TVL). The current value of Lending stands at $22.46 billion, up from $21.64 billion at the start of the month, a change of +2.90%.

Chart: Defillama

The LayeBank chain secures the spot of the top gainer with a change of +31.19% Month-On-Month (MoM) among the top 10 chains. On the contrary, the Radiant chain has recorded the highest loss of 21.01% within the top chains over the past month.

Liquid Staking:

The Liquid Staking category had started the month with a valuation of $33.417 Billion and is about to conclude the month at $33.717 Billion, a change of +4.01% during the month.

Chart: Defillama

This category has a solid start to the year as 8 out of the top 10 chains have recorded a positive month, with Swell Liquid Staking being the top gainer with a jump of over 40% in valuation Month-On-Month (MoM). Marinade Liquid Staking has recorded a loss of 8.37% from the top 10.

Top DeFi Performers January 2024:

The DeFi category has displayed a slow start to this year as it has recorded minor monthly fluctuations. Further, the upward trajectory gives a sign of relief to the investors as it indicates a higher potential of the category experiencing a bullish price action.

The Uniswap has experienced a jump of approximately 10%, the highest gain among the top five chains. On the other hand, JustLend has recorded a loss of 5.50% during the same time. 

• Lido Dao (LDO): The leader of the DeFi category, Lido Dao token with a valuation of $21.425 Billion, has added $290 Million, a change of +0.19% over the previous month. The LDO has recorded sideways price action during the first month of the year, indicating a cool-off in the buying pressure for the chain.

• AAVE (Aave): It has displayed a decent jump of 4.02% Month-On-Month (MOM) to its TVL from $10.472 Billion on 1st January to $10.863 Billion today. 

• Maker Dao (MKR): The MKR token has lost its second spot on the table after losing over 3.5% in valuation over the past month. The Maker had started the month with a valuation of $8.245 Billion to $8.059 Billion.

• JustLend: The JustLend token plays a vital role in the Lending protocol and has recorded a loss of 5.05% this month. It had started the month with a valuation of $6.51 Billion and currently stands at $6.149 Billion.

• Uniswap (UNI): Uniswap (UNI) has recorded the highest gains of 10.58% out of the top ten this month. The UNI chain has a current valuation of $4.101 Billion 

Conclusion:

The Decentralized Financial (DeFi) system is expected to gain significant valuation this year as it has constantly risen in the past three months. The category recorded a higher number of transactions daily, highlighting a rise in the investor’s inflow in the market.

With the uncertainty hovering over the crypto industry’s repeated collapses of centralized exchanges, the rising market volatility is predicted to act as a catalyst in the adoption process of the DeFi market.