DeFi Report January 2024: Detailed Analysis of Top Performers & Losers

The crypto industry started the year 2024 positively, as the market experienced a strong uptrend during the first week. Following the approval of the Spot Bitcoin ETF, the market witnessed a short surge, after which the crypto space has been experiencing a significant correction in value.

Bitcoin and Major altcoins had been moving sideways for over a week, suggesting a cool-off in the price action. With the approval of the Spot ETF trading, the crypto industry has successfully achieved its first milestone this year. With Bitcoin halving around the corner, this year is said to be a crucial one.

On the other hand, the DeFi category has displayed a minor change in its valuation. The Total Value at the time of writing showed above $120 Billion, a +2.5% increase Month-On-Month (MOM). Further, the total number of users has also experienced a decent increase.

Top tokens from the category have recorded minor changes, indicating a switch of interest among the investors. Newer chains have experienced a massive price action this month, indicating the rising competition for innovation and technology in the industry.

Top DeFi Categories!

The Decentralized Finance (DeFi) sector is poised for significant growth this year, with exciting developments on the horizon. The community sets its sights on reaching the coveted $150 Billion milestone by the end of the year.

Despite the minor change in the valuation of the category, it has recorded significant fluctuations in the chart, highlighting a mixed sentiment in the crypto space. Further, the article includes a detailed explanation of the top three sub-parts of this respective category.

Dexes:

Dexes, short for decentralized exchanges, have exhibited robust growth, contributing to a 4.29% increase in valuation this month alone. Starting at $13.867 Billion, the category now stands at $14.462 Billion. Noteworthy leaders like Uniswap and Curve DEX demonstrated commendable performance, recording gains of 11.96% and 10.72%, respectively. However, PancakeSwap experienced a slight setback with a 5% decrease in valuation.

Lending:

Lending, constituting one-sixth of the Total Value Locked (TVL), is a cornerstone in the DeFi ecosystem. Currently valued at $22.46 billion, it witnessed a positive shift of +2.90% from the month’s onset.

LayeBank emerged as the top gainer with an impressive +31.19% Month-On-Month (MoM) change among the top 10 chains. In contrast, Radiant chain faced the highest loss, dropping by 21.01% within the same period.

Liquid Staking:

The Liquid Staking category began the month at $33.417 Billion, concluding at $33.717 Billion, marking a 4.01% increase.

Notably, 8 out of the top 10 chains experienced a positive month, with Swell Liquid Staking leading the pack with a remarkable 40% MoM valuation jump. Marinade Liquid Staking, however, recorded a loss of 8.37% among the top 10.

Top DeFi Performers for January 2024:

Despite minor monthly fluctuations, the DeFi sector shows promise for a bullish trajectory. Uniswap led the way with an impressive 10% gain, while JustLend faced a slight setback with a 5.50% loss.

Now, let’s take a closer look at the top DeFi performers for January 2024:

• Lido Dao (LDO): The leader of the DeFi category, Lido Dao token with a valuation of $21.425 Billion, has added $290 Million, a change of +0.19% over the previous month. The LDO has recorded sideways price action during the first month of the year, indicating a cool-off in the buying pressure for the chain.

• AAVE (Aave): It has displayed a decent jump of 4.02% Month-On-Month (MOM) to its TVL from $10.472 Billion on 1st January to $10.863 Billion today.

• Maker Dao (MKR): The MKR token has lost its second spot on the table after losing over 3.5% in valuation over the past month. The Maker had started the month with a valuation of $8.245 Billion to $8.059 Billion.

• JustLend: The JustLend token plays a vital role in the Lending protocol and has recorded a loss of 5.05% this month. It had started the month with a valuation of $6.51 Billion and currently stands at $6.149 Billion.

• Uniswap (UNI): Uniswap (UNI) has recorded the highest gains of 10.58% out of the top ten this month. The UNI chain has a current valuation of $4.101 Billion

Conclusion:

The Decentralized Financial (DeFi) system is expected to gain significant valuation this year as it has constantly risen in the past three months. The category recorded a higher number of transactions daily, highlighting a rise in the investor’s inflow in the market.

With the uncertainty hovering over the crypto industry’s repeated collapses of centralized exchanges, the rising market volatility is predicted to act as a catalyst in the adoption process of the DeFi market.