After Bitcoin’s all-time high, DeFi TVL hits a record high of over $ 233 billion

Bullish sentiment reigns in the cryptocurrency market on October 20 as Bitcoin’s (BTC) surge to a new all-time high of $ 67,000 catapults the digital asset into uncharted territory and investors watch closely as altcoins and DeFi tokens hit the move.

Crypto Fear and Greed Index. Source: Alternative.me

The DeFi sector has also benefited from BTC’s bullish breakout and today Total Value Locked (TVL) has climbed to a new record high across all DeFi protocols.

According to data from DeFi Llama, which gathers data from DeFi logs across all major blockchain networks, including Binance Smart Chain (BSC), Avalanche (AVAX), and Wrapped Bitcoin (WBTC), there is now a value greater than 233, $ 88 billion locked in logs across the various blockchain networks. Currently, AAVE ranks second with $ 18.79 billion and Curve with a locked value of $ 17.97 billion.

Total value locked in DeFi. Source: DeFi Lama

As a result of the soaring price of Bitcoin, WBTC now ranks fourth on TVL with a value of $ 14.51 billion deployed across the DeFi landscape.

The biggest winners at TVL over the past seven days were Trader Joe, up 57.2% and Rari Capital, up 50.57%. Yield Yak was also up 36.52%.

Top TVL winners in the past 7 days. Source: Token Terminal

New users flow into DeFi. a

In addition to rising token values, the DeFi ecosystem has also seen a sharp surge in the influx of new users and data from Dune Analytics shows that 3,591,876 unique wallets have now interacted with at least one DeFi protocol.

Total number of DeFi users over time. Source: Dune Analytics

Despite the influx of new users, the trading volume on the decentralized stock exchanges (DEX) remained below the highs of May and is currently also below the activity of the last few months.

Monthly DEX volume. Source: Dune Analytics

One possible explanation for this was the increased focus on BTC in recent months, as speculation about when a Bitcoin Exchange Traded Fund (ETF) would happen and whether or not the BTC price will exceed $ 100,000 by the end of 2021 dominated the talks.

Related: Ethereum is nearing its own all-time high as ETH price recovers $ 4,000

The stablecoin growth indicates future demand for crypto

Another factor contributing to DeFi’s growth could be the steady integration and infusion of stablecoins.

There has been an interesting history of spikes in circulating tether supply, which largely coincided with increases in Bitcoin price, and this latest rally is no exception, as BTC hit a new all-time high on the same day, as did the circulating supply of USDT.

Tether just topped $ 70 billion market cap pic.twitter.com/R0gO3Nk2SB

– Chris (@ChrisBTCbull) October 20, 2021

The importance of stablecoins to the overall DeFi economy is also evidenced by the total value of Curve, which specifically deals with creating stablecoin pools for use across the ecosystem.

The total market cap for cryptocurrencies is now $ 2.635 trillion and the dominance rate of Bitcoin is 47.5%.

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