quick take
- Decentralized finance (DeFi) market achieves a milestone with total value locked (TVL) reaching $100 billion amidst a surge driven by Bitcoin.
- Memecoin frenzy spreads throughout the cryptocurrency market.
The cryptocurrency industry has experienced a notable shift due to the recent surge in Bitcoin demand, particularly affecting the sentiment surrounding decentralized finance (DeFi) protocols. Recent data from DefiLlama indicates that the total value locked (TVL) in DeFi protocols surpassed $100 billion on March 9, with a volume exceeding $10 billion recorded within the preceding 24 hours.
Significant growth is observed in the Total Value Locked (TVL) in DeFi.
While this surge signifies a significant milestone, it falls short of the record high of $189 billion set in November 2021. Leading the pack in terms of locked capital is the liquid staking protocol Lido, which boasts an impressive $38.7 billion locked on-chain. EigenLayer, a prominent staking ecosystem, closely follows, alongside the Aave protocol, both securing over $11 billion in locked capital.
This surge in DeFi activity marks a notable return to form, with TVL surpassing the $100 billion threshold for the first time in nearly two years. The uptick in DeFi engagement is largely attributed to the renewed positive sentiment in the crypto markets, driven primarily by the introduction of spot Bitcoin exchange-traded funds (ETFs) in January.
The introduction of spot Bitcoin ETFs has ignited considerable institutional demand, propelling Bitcoin to unprecedented heights, with prices breaching the $70,000 mark on March 8. Assets in Bitcoin ETFs surged to a staggering $28 billion on March 8, excluding assets from Grayscale’s Bitcoin Trust, which transitioned to an ETF in January from its previous over-the-counter (OTC) structure.
Rumors circulating on social media platforms suggest shortages of Bitcoin on OTC trading platforms, prompting them to resort to public exchanges to fulfill client orders. OTC desks, catering primarily to large-volume traders, including institutional investors, have faced increased pressure amid the heightened trading activity surrounding Bitcoin.
A frenzy of Memecoin enthusiasm inundates the cryptocurrency market.
As Bitcoin surged past the $60,000 mark, several centralized crypto exchanges, including Binance, Coinbase, Kraken, and Bybit, faced temporary outages. Responding to the spike in demand, Crypto.com CEO Kris Marszalek announced the hiring of an additional 480 customer representatives to manage the influx of inquiries and support requests.
The rapid fluctuations in Bitcoin’s price prompted algorithmic trading firms to increase their rate of order placements and cancellations significantly. This move aimed to effectively manage their positions, as highlighted by Ivo Crnkovic-Rubsamen, the chief strategy officer and technical lead for trading at the dYdX exchange.
Bitcoin’s meteoric ascent also propelled a surge in memecoin prices. Korra (KORRA) led the pack with a staggering 577% increase in the last seven days, followed by Ribbit (RIBBIT) with a 235% surge and PUG AI (PUGAI) with a 232% jump during the same period. Additionally, popular tokens like Shiba Inu and Pepe saw notable gains of 168% and 165%, respectively.
According to Bitget data, the cumulative market capitalization of memecoins now stands at $61 billion. As a result, Dogecoin and SHIB have emerged among the top 1 tokens by market cap, boasting $26 billion and $20 billion, respectively. This recent surge in Bitcoin demand, coupled with the ensuing positive sentiment in the crypto markets, has sparked significant developments across various sectors of the cryptocurrency industry, including DeFi, institutional investment, and the memecoin market.
