Last week, the decentralized finance (DeFi) ecosystem attempted to gain some momentum amid the bear market crash. Uniswap experienced a turnaround and overtook Ethereum in terms of network fees paid. However, not all DeFi protocols met the same fate, as Bancor had to pause its “impermanent loss protection” in the wake of a hostile market.
DappRadar’s report shows that the GameFi ecosystem continues to thrive despite the current market downturn. Solend invalidates Solana’s whale wallet takeover plan with a second government vote.
The top 100 DeFi tokens showed signs of recovery after last week’s chaos, with several of the tokens posting double-digit gains.
Summer DeFi 3.0? Uniswap outperforms Ethereum in fees, DeFi outperforms
Decentralized exchange (DEX) Uniswap has outperformed its host blockchain Ethereum for fees paid on a seven-day moving average.
The surge appears to be part of a recent surge in high demand for DeFi amid the current bear market. Decentralized finance (DeFi) platforms such as Aave and Synthetix have seen an increase in fees paid in the last seven days, while their native tokens and others such as Compound (COMP) have also risen in price.
DappRadar Report: GameFi Still Growing Despite Crypto Winter
Blockchain gaming was the subject of the latest DappRadar x BGA Games Report #5, published on Tuesday. The report analyzed the healthy ecosystems and investments in the GameFi and metaverse markets.
The report covered several projects in detail, highlighting their continued success and growth. Splinterlands, Illuvium, Galaverse, and STEPN have continued to attract new players to their platforms, gaining financial interest, and expanding their businesses.
Bancor pauses impermanent loss protection citing ‘hostile’ market conditions
Bancor, a DeFi protocol often credited as the pioneer of the DeFi space, paused its impermanent loss protection (ILP) feature on Sunday, citing “hostile” market conditions.
In a blog post on Monday, the DeFi protocol noted that pausing the ILP is a temporary measure to protect the protocol and users. When a user gives liquidity to a liquidity pool, the ratio of their deposited assets changes at a later point in time, potentially leaving investors with more of the lower value token, this is known as an impermanent loss.
Solend Invalidates Solana Whale Wallet Acquisition Plan With Second Governance Vote
Solana-based DeFi lending protocol Solend has created another governance vote to invalidate the recently approved proposal that gave Solend Labs “emergency powers” to access a whale’s wallet to avoid liquidation.
On Sunday, the crypto lending platform launched a governance vote titled “SLND1: Mitigating Whale Risk.” It allowed Solend to reduce the risk that the whale settlement poses to the market, allowing the lending platform to access the whale’s wallet and letting settlements take place out of court.
DeFi Market Landscape
Analytical data reveals that the total value of locked DeFi posted a small recovery to exceed $56 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market cap were on the move, with many of the tokens posting double-digit gains over the past week.
Most of the DeFi tokens in the top 100 ranking by market capitalization were trading in the green. Synthetix (SYX) posted the biggest gain with a 90% gain in the last week, followed by Uniswap (UNI), which saw a 37% gain in the last seven days. COMP gained 31%, while Thorchain (THOR) saw a 22% gain.
Celsius network, the lending platform that has been in trouble from liquidations and lack of Capital, saw a community-led bearish contraction of its native token, CEL. It posted a 300% jump over the past week amid market uncertainty about its future.
Thanks for reading our roundup of this week’s most impactful DeFi happenings. Join us again next Friday for more stories, insights and education in this dynamically moving space.
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