The cryptocurrency market has recently seen a significant shift in focus, as Bitcoin and XRP have surged in value and overtaken the DeFi sector’s dominance. This marks a stark contrast to the previous weeks where decentralized finance (DeFi) was the most talked about topic, as traders had flocked to projects offering yield farming opportunities.
The Block’s DeFi Dominance data dashboard provides an in-depth look into the current state of the DeFi market by summing up the market capitalizations of a variety of popular DeFi tokens. These include Uniswap, Aave, PancakeSwap, Maker, The Graph, Thorchain, SushiSwap, Compound, and Yearn.finance, Synthetix, Bancor, 0x, UMA, Curve, Nexus Mutual, 1inch, Balancer, Serum, Alchemix and Perpetual Protocol. Combining all of these tokens into one statistic gives us a good idea of how the entire sector is performing and how it has grown over time.
The last three months have seen a noticeable shift in the cryptocurrency landscape, with bitcoin making significant market-share gains and DeFi’s dominance beginning to decline. Over the course of 90 days, bitcoin has grown from representing 37.93% of the total crypto market capitalization to 44.41%, illustrating its increasing dominance and widening its lead over all other cryptocurrencies. This impressive growth for bitcoin has come at the expense of DeFi projects, whose share of the market has been steadily decreasing since their peak earlier this year.
XRP Gains from the Legal Dispute with SEC
The cryptocurrency XRP is surging, outperforming even Bitcoin in the midst of Ripple’s legal battle with the U.S. Securities and Exchange Commission. According to Strahinja Savic, head of data and analytics at FRNT Financial, searching interest in XRP on Google Trends is highly indicative of how investors are feeling about the case’s outcome. It’s uncertain what is driving the current optimism around XRP, but it could be due to an increase in attention towards the SEC’s lawsuit against Ripple, as well as statements from Ripple CEO Brad Garlinghouse and other figures close to the case who is conveying a sense of confidence.
While some investors are still bullish on DeFi, others have decided to move their funds into Bitcoin and Ripple’s XRP token, which have been on a tear lately with impressive gains. As a result, DeFi’s share of the crypto-market spotlight has dramatically declined – highlighting the ever-changing nature of this space and how quickly sentiments can alter.
