Ethereum DeFi isn’t en vogue of late, but that doesn’t mean it’s not an important part of crypto anymore. Especially if you consider what it says about the health of the overall cryptosphere. Covered: Ethereum, DeFi, And The Crypto Market Cap What TVL v. Crypto Market Cap Tells Us Ethereum, DeFi, And The Crypto Market […] The post What Ethereum DeFi Tells Us About The Surprising Strength Of The Crypto Market appeared first on CryptosRus.

What Ethereum DeFi Tells Us About The Surprising Strength Of The Crypto Market

Ethereum DeFi isn’t en vogue of late, but that doesn’t mean it’s not an important part of crypto anymore. Especially if you consider what it says about the health of the overall cryptosphere.

Covered:

  • Ethereum, DeFi, And The Crypto Market Cap
  • What TVL v. Crypto Market Cap Tells Us

Ethereum, DeFi, And The Crypto Market Cap

Recently there have been some alarms sounding about Ethereum DeFi. Mainly it surrounds its dominance dropping to 55% of total DeFi TVL. Moreover, there has even been some panic over the fact that the overall DeFi TVL has dipped under 200 billion.

However, if you zoom out, those figures tell you the strength of Ethereum’s DeFi, the DeFi Sector as a whole, and the entirety of the crypto market.

Above is a chart of the global market cap. Back in November, the global market cap reached its highest ever 2.9 billion USD.

Compare that to the all-time highs for Ethereum and DeFi as a whole. Back on November 12th, ETH TVL hit $163 billion. Meanwhile, on December 8th DeFi TVL hit $255 billion.

Since then the crypto market cap has fallen over 42% from its all-time high. Meanwhile, Ethereum DeFi TVL is only down 36%, while DeFi as a whole is only down 24%.

What TVL v. Crypto Market Cap Tells Us

Certainly, there isn’t a huge difference between the fall of the entire crypto market and Ethereum TVL — about 6%. However, Ethereum’s lost TVL has coincided with the rise of DeFi alternatives like Terra, Fantom, and Cardano.

The current crypto market lows can be blamed for larger macro factors, but interestingly enough DeFi isn’t affected by those same factors. Why?

DeFi for all its degen yield farming insanity also features more sensible staking options for long-term investors. Meaning, as some people sell off crypto for profit or out of panic, others are looking at crypto still as a long-term investment. Regardless of what’s up.

Recommended: How To Earn 20% On UST Stablecoins With Anchor Protocol

 

The post What Ethereum DeFi Tells Us About The Surprising Strength Of The Crypto Market appeared first on CryptosRus.