As Bitcoin hovered just below the $60K mark and major altcoins appeared to be in a state of consolidation, the DeFi space and a number of other DeFi tokens drew market attention. As BTC’s trajectory weakened, it appeared that capital was flowing into DeFi projects such as Crypto.com and Curve DAO.
It was not the first time the market looked at DeFi tokens for higher ROIs, even as the top coin’s market appeared shaky. In fact, some of the top DeFi tokens have had stronger rallies with higher gains than BTC in the past.
For example, from the end of July to the beginning of August, the price of Uniswap increased by nearly 100 percent, whereas BTC only increased by about 50 percent. BTC losses have focused attention on Crypto.com coin and the Curve DAO token CRV once again. However, this did not motivate the rallies.
DeFi’s Growth
According to Defillama data, the total value locked (TVL) in Defi protocols has surpassed $255 billion, following a period of rapid growth. Curve controls 8.11 percent of the TVL market, worth $20.75 billion.
Curve also appears to be the leader in terms of liquidity, with $18.4 billion in DEX liquidity by protocol. The protocol outpaced Uniswap (V2 + V3), which had just reached $10 billion in liquidity, as well as PancakeSwap and SushiSwap.
CRO soared shortly after Crypto.com announced that a multi-purpose arena in downtown Los Angeles would be Crypto.com ARENA for the next 20 years as a result of a partnership with the Los Angeles Kings and Los Angeles Lakers.
In addition, Crypto.com coin’s circulating market supply and market capitalization increased in tandem with its price. The asset’s circulating market supply increased from $5.12 billion to $13.15 billion in just two weeks.
Curve and CRO Growth?
Aside from the intense social attention and buzz surrounding the two coins, the discovery was that CRO tokens were the second most held asset after SHIB by the top 1000 ETH wallets, indicating the coin’s popularity.
In terms of the two tokens, one similar trend was their low correlation to BTC, which coincided with price tops. Curve’s correlation to BTC was near all-time lows, at -0.03. CRO’s correlation to Bitcoin was also falling at the time of writing, as its daily active addresses increased.
In the last few weeks, CRV’s increasing TVL also indicated institutional money flowing into its ecosystem, whereas CRO is currently experiencing high retail euphoria amid heightened social anticipation.
The risk-adjusted returns for the two tokens have been high. Which is one reason why crowds draw to the DeFi tokens. However, whether their rallies will still be relevant after BTC and ETH resume their runs remains to be seen.
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