Decentralized Finance (DeFi) knows no stopping and several tokens reached a new all-time high this week.
Are we in a bubble or are we currently re-evaluating the DeFi sector?
DeFi has been performing better than Bitcoin (BTC) and Ethereum (ETH) for a few weeks now . The sector was able to attract many new users and investors, particularly due to the trading hype of the last few weeks. Since well-known trading apps like Robinhood and TradeRepublic have stopped trading some cryptocurrencies and stocks, many investors have been looking for alternatives in recent weeks .
Decentralized Finance in particular benefited from this development. This is due to the fact that in most DeFi projects no central authority can stop trading and the protocols thus offer an alternative to the existing financial world.
In addition, the capital in decentralized finance logs grew to a record level of nearly $ 34 billion this week.
That represents a growth of almost 30 percent within the last seven days. But that’s not enough, the “ETF token” DeFi Pulse Index (DPI) rose this week by 46.16 percent to 413.53 US dollars at the time of going to press at.
DPI reflects the entire development of the DeFi sector very well, as it is made up of the 10 largest DeFi projects and has repeatedly climbed to a new all-time high in the last few days.
Several DeFi tokens hit new all-time highs
Universal Market Access (UMA) rose more than 200 percent in the past seven days, hitting a new all-time high at $ 41.56 . But not only the DeFi derivative project UMA reached a new all-time high, but also the decentralized exchange (DEX) 0x (ZRX). Last Friday alone, the price of ZRX exploded 78.25 percent and is at $ 1.41 at the time of going to press .