After taking a break for more than a month, it has been seen that DeFi is now back in action. This is because the total crypto collateral which is locked in DeFi has now reached an all-time high of $12.3 billion. Within the last 48 hours, around one billion dollars had been added to the total value, which indicates the true surge in its value. However, the figures on different analytics platforms are quite different from each other.
The Surge in DeFi TVL Followed by Increase in Bitcoin Price
According to the tracker report by Coingecko, the TVL is around $11.6 billion. With this surge to an all-time high, Bitcoin price has also reached a high of 2020 i.e. $13,200. The total market capitalization of DeFi, including all the tokens, is $14.3 billion, which is considered to be a record high. This is because the market cap has increased by $2 billion within the last 48 hours.
Spencer Noon, DTC Capital Head, has said that the Decentralized Finance’s bull market will soon enter into round two. He said that most of the yield farmers might have moved back to Bitcoin after making some huge gains for months. However, he mentioned:
“The likely inflection point for DeFi Bull Phase 2 is the election, where there are multiple outcomes that would be favorable for risk assets.”
Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators:
– TVL: $12.41B
– ERC20 Stablecoins: $14B
Don't listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing.
— Spencer Noon (@spencernoon) October 22, 2020
The Surge in TVL Is Due to Increase in Price
It is also believed that the news by PayPal of launching crypto payments have also contributed a lot to such huge gains recently. Along with this, the surge in TVL is also due to an impressive increase in the price of DeFi tokens, which also includes Ethereum. In the past 48 hours, the Ethereum price has increased by around 12%.