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DeFi TVL Reached 40-Month Highs - Coinspeaker
Key Notes
The long-awaited all-time high for Ethereum (ETH) might be just around the corner, with the notable interest in decentralized finance (DeFi).
The DeFi total value locked surpassed the $150 billion mark, gaining 84% over the past four months, for the first time since April 2021, according to data from DefiLlama. The crypto community has been hinting at a DeFi summer on X after the TVL reached this key milestone.
AAVE, the leading lending protocol, also saw a 2.6% rise in its TVL, reaching an ATH of $38.5 billion. Lido, the top liquid staking platform, is following closely with a TVL of $37.7 billion.
Positive Sentiments
The inflows into the DeFi sector show a steady rise in interest from both investors and short-term traders looking for liquidity. The strong institutional demand has also brought positive sentiment to the crypto industry.
Spot Bitcoin (BTC) exchange-traded funds in the US brought just over $6 billion in net inflows last month. ETH-based ETFs followed with $5.4 billion in net inflows in the same timeframe.
While the rise in TVL could trigger a surge in speculative trading, thanks to the increasing liquidity, the interest from long-term and institutional investors strengthens the bullish sentiment around Ethereum.
However, with high liquidity comes rising volatility, as speculative activities will likely surge.
Earlier today, Ethereum reached $4,332 for the first time since November 2021, when it hit an ATH of $4,891. The leading altcoin saw its market cap surpass the $500 billion mark with a $43 billion 24-hour trading volume.
The global crypto market capitalization also reached an ATH of $4.04 trillion due to the renewed interest in altcoins, according to data from CoinMarketCap.
The current outlook seems bullish, but remaining cautious is advised due to the expectations of high volatility and macro uncertainty.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.