Cryptocurrencies return to gains with the most activity in decentralized financial applications in two years
While it was also noteworthy that Ethereum gained approximately 7% yesterday and enabled it to regain the 3600 level for the first time in about twenty days as well.
Cryptocurrencies were able to return to yesterday’s notable gains, with Bitcoin regaining levels above $71,000, in addition to surpassing the $72,000 level for the first time in about twenty days. While it was also noteworthy that Ethereum gained approximately 7% yesterday and enabled it to regain the 3600 level for the first time in about twenty days as well.
Yesterday’s gains led to some losses for bearish bettors yesterday, with more than $117 million in short positions in crypto futures liquidated, according to CoinGlass. While this number appears to be relatively small compared to what we see during broad market movements, it represents the largest liquidation amount since March 25th.
As usual, Bitcoin captured the bulk of these liquidation, with more than $45 million, along with Ethereum, which received more than 33 million.
These gains pushed further user flows, Total Value Locked (TVL), towards decentralized financial applications (DeFi) built on crypto blockchains, which as of this morning reached the highest levels since May of 2022 at $105 billion despite some losses today. After yesterday’s gains, according to data provided by DeFiLlama.
The Ethereum network accounts for more than 50% of the TVL in the market as a whole, led by the largest staking protocol, Lido, which recorded a growth of about 8% during the past 24 hours, reaching more than $35 billion.
This influx towards DeFi applications, the largest of which are concentrated in staking and lending, comes with the markets anticipating the Bitcoin halving event ten days from today, indicating the hope of achieving more record gains for crypto market in the period following that event.
On the other hand, Bitcoin spot ETFs recorded a lackluster performance yesterday, with net outflows of more than $223 million yesterday in total. While the Grayscale Bitcoin Trust (GBTC) continued to record massive outflows of more than $303 million yesterday, according to SoSoValue data.
