The Crypto Sector Bounces Back With A DeFi-Driven Rally

The crypto sector is in a recovery mode from last week’s dramatic low of $30,681.50 for the industry leader, Bitcoin. However, the sector is still nowhere near its previous levels, despite the increasing market cap. Data from cryptobrowser.io shows that Bitcoin is still nearly 25% down from its monthly high of $59,519.35 to trade at $37,172.32 as of press time.

Source: CryptoBrowser.io

Ethereum, on the other hand, made a strong comeback after falling to a weekly low of $1,952.46 and it’s currently trading at $2,425. Meanwhile, the majority of Ethereum’s changes come amid an interest spike in the decentralized finance realm.

The altcoin sector sprang back to life on May 24, as some projects recorded price increases by more than 60%. The move was coupled with Bitcoin regaining some positions above $38,000.

However, some analysts are describing the volatility as a “dead cat bounce”, but the price drop is considered as a welcoming sign for crypto investors, who endured through last week’s crypto market wipeout, which deleted nearly $1.3 trillion in value from the total cryptocurrency market cap.

The biggest gainer among the top 200 coins is Ethereum’s (ETH) layer-two solution Polygon (MATIC), which secured its place as the leading L2 solution in the market in recent weeks.

DeFi tokens also experienced positive price changes, with Maker (MKR) surging 91% overnight to trade above $4,000 while Yearn.finance (YFI) has rallied by 72% and now trades near the $48,000 level.

Uniswap (UNI) and Aave (AAVE), which saw their token values increase by more than 50%, and a 62% price gain for the Binance Smart Chain-based BakeryToken (BAKE) which now trades above $3.30.

DeFi also made a rebound from May 24’s fall below $50 billion in total value locked (TVL) with Maker currently holding the lead with $9.06 billion locked. The next in line, Aave and Compound, come second and third with $8.02 billion and $7.58 billion, respectively.

The total cryptocurrency market also received some fresh blood in terms of market capitalization, which currently stands at $1.570 trillion with a Bitcoin dominance rate of 44%, while Ethereum holds 18 percent of the entire market.