DeFi Market experienced a slowdown as noted by Matrixport, despite witnessing a recent surge in total value locked (TVL) to $108 billion.
Matrixport, a cryptocurrency service provider, noted in an article on the social networking site X that the euphoric market era has slowed down decentralized finance (DeFi). The corporation did point out that after a short consolidation period, the cumulative total value locked (TVL) had increased to $108 billion, reaching its greatest peak since the Terra/Luna disaster in May 2022.
Also, linked total value locked (TVL) increased by $17 billion last week after the company noticed that Ethereum spot ETFs are not likely to have staking yield capabilities.
The most notable expansion among these protocols is Lido, a liquid-staking system. This development is good news for Ethereum in general, the business said.
On April 14th, just after decentralized cryptocurrency exchange Uniswap got a Wells Notice from the Securities and Exchange Commission (SEC), the proportion of market capitalization for DeFi tokens relative to all cryptocurrencies fell to 3.63%.
The Wells Notice is a warning that the corporation could face legal action from federal authorities. This notice is part of a larger regulatory investigation into DeFi.
Since then, DeFi has made a comeback, although its recent performance has been below average compared to its historical performance, highlighting how the Wells notice affected the sector.
On the other hand, players in the wider cryptocurrency scene saw greater gains after the US approval of Ethereum spot ETFs. The daily trading volume on Uniswap reached $1.39 billion, an 82.59% increase from the previous day.
Crypto’s Value Climbs 25% in Just 7 Days; More Big News is on the Way
CoinMarketCap data shows that the price of Ethereum (ETH) has risen somewhat over the past week, with a price of $3,904 at the time of writing, representing a growth of more than 25.71%.
Investors are now more bullish about Ethereum (ETH) due to the regulatory win, especially in light of the fact that they expect institutional demand to increase once Ethereum spot ETFs begin trading.
Despite the positive developments, QCP Capital, a cryptocurrency trading business, reports that many analysts believe a substantial breakout may not occur until they clarify S-1 approvals and inflow data. Even though Ethereum ETFs might start trading weeks or months from now, this clarification ought to be forthcoming.