January 2024 DeFi Report: In-depth Examination of Leading Gainers and Decliners
The cryptocurrency industry kicked off the year 2024 on a positive note, with a strong uptrend in the market during the first week. The approval of the Spot Bitcoin ETF led to a short surge in the market, but since then, there has been a significant correction in the value of cryptocurrencies.
Bitcoin and other major altcoins have been trading sideways for over a week, indicating a cooling-off period in the price action. The approval of the Spot ETF trading is a major milestone for the crypto industry this year, and with the Bitcoin halving approaching, it is expected to be a crucial year.
In the DeFi category, there has been a minor change in valuation. The Total Value at the time of writing is over $120 billion, with a 2.5% increase month-on-month. The total number of users in the DeFi space has also seen a decent increase.
The top tokens in the DeFi category have recorded minor changes, suggesting a shift in investor interest. Newer chains have seen significant price action this month, indicating increased competition for innovation and technology in the industry.
The Decentralized Finance (DeFi) sector is expected to see significant growth this year, with a goal to reach $150 billion by the end of the year.
Despite the minor change in valuation, the DeFi category has experienced significant fluctuations, indicating mixed sentiment in the crypto space. The article provides a detailed explanation of the top three sub-parts of the DeFi category.
Dexes, or decentralized exchanges, have shown strong growth, contributing to a 4.29% increase in valuation this month. Leaders like Uniswap and Curve DEX have performed well, recording gains of 11.96% and 10.72%, respectively. However, PancakeSwap has seen a slight decrease in valuation.
Lending, which makes up a significant portion of the Total Value Locked (TVL) in DeFi, has seen a positive shift of 2.90% this month. LayerBank has emerged as the top gainer with a 31.19% month-on-month change, while Radiant Chain has experienced the highest loss with a 21.01% decrease.
Liquid Staking has seen a 4.01% increase this month, with 8 out of the top 10 chains experiencing a positive month. Swell Liquid Staking leads the pack with a 40% valuation jump, while Marinade Liquid Staking has recorded a loss of 8.37% among the top 10.
In terms of top DeFi performers for January 2024, Uniswap has gained 10%, while JustLend has faced a slight setback with a 5.50% loss.
Looking closer at the top DeFi performers for January 2024, Lido Dao (LDO) has added $290 million with a change of 0.19%, AAVE has seen a 4.02% increase in TVL, Maker Dao (MKR) has lost its second spot with a 3.5% decrease in valuation, and JustLend has recorded a 5.05% loss. Uniswap has recorded the highest gains of 10.58% among the top ten.
Overall, the DeFi sector is expected to see significant valuation growth this year, as it has consistently risen in the past three months. The category has seen an increase in daily transactions, indicating a rise in investor interest. With the uncertainty surrounding centralized exchanges, the growing market volatility is expected to drive adoption of the DeFi market.