Matrixport Reports $17B Rise In DeFi TVL In Past Week As Ethereum Spot ETFs Will Not Support Staking
In Brief
Matrixport noted that since spot Ethereum ETFs won’t offer staking yields, there was $17 billion increase in related TVL over the past week.
Cryptocurrency service provider Matrixport shared an article on social media platform X, highlighting observations that decentralized finance (DeFi) had experienced a slowdown during this bullish market phase. Nevertheless, the company noted that following a brief consolidation period, the cumulative total value locked (TVL) has recently surged to $108 billion, marking its highest point since the Terra/Luna crash in May 2022.
In addition, the company observed that Ethereum spot exchange-traded funds (ETFs) are unlikely to offer staking yield capabilities, leading to a $17 billion increase in related total value locked (TVL) over the past week. Among these, the liquid staking protocol Lido has experienced the most significant growth. The company highlighted that this development bodes well for Ethereum overall.
DeFi dominance, representing the proportion of DeFi tokens’ market capitalization compared to the total cryptocurrency market capitalization, declined to 3.63% on April 14th, shortly after decentralized cryptocurrency exchange Uniswap received a Wells Notice from the Securities and Exchange Commission (SEC). The Wells Notice serves as a cautionary indication that federal regulators might pursue legal action against the company, which the company receives as part of a wider regulatory scrutiny of DeFi.
DeFi has since experienced a rebound, although historically, its recent performance has been relatively low, underscoring the impact of the Wells notice on the sector. However, the recent approval of Ethereum spot ETFs in the United States brought participants across the broader cryptocurrency landscape more gains. Uniswap witnessed a substantial increase in daily trading volume, reaching $1.39 billion, marking an 82.59% uptick in the past 24 hours.
ETH Price Rises Over 25% In 7-Day Period, Major Breakthrough Further Anticipated
ETH’s price has also experienced a modest increase over the past 7-day period, trading at $3,904 as of the writing time and reflecting a rise of over 25.71%, according to data from CoinMarketCap.
The regulatory victory has instilled bullish sentiment in ETH, particularly anticipating potential institutional demand once the Ethereum spot ETFs commence trading. However, despite the positive developments, many analysts believe a significant breakout may not occur until there is greater clarity on S-1 approvals and inflow data, according to cryptocurrency trading firm QCP Capital. This clarification should be forthcoming, although it may take weeks or even months for Ethereum ETFs to commence trading.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
