DeFi Bulletin: Analysts Spot Early Signs of a Revival as TVL Keeps Rising

The decentralized finance (DeFi) sector continues to attract heightened attention from crypto investors. ForkLog has compiled the most important events and news from recent weeks into this digest.

Key metrics for the DeFi segment

Total value locked (TVL) in DeFi protocols rose to $47.8 billion. The leader is Lido with $19.7 billion, while the second and third spots are held by Maker ($8.3 billion) and JustLend ($6 billion), respectively.

TVL in Ethereum applications rose to $26.9 billion. Trading volume on decentralized exchanges (DEX) over the last 30 days stood at $72.8 billion.

Uniswap continues to dominate the non-custodial exchange market — accounting for 62.3% of total turnover. The second DEX by trading volume is PancakeSwap (14.8%), the third is Curve (6.6%).

JPMorgan notes early signs of DeFi revival

Activity in the DeFi and NFT directions shows early signs of recovery, as the prospect of bitcoin-ETF approval improved sentiment in the crypto markets. Analysts arrived at this conclusion.

They say the main driver of DeFi segment growth is increased trading activity on decentralized exchanges. A significant influence was also exerted by liquid staking Lido Finance.

dYdX lost $9 million in a targeted attack

On November 17, about $9 million from the dYdX decentralized derivatives exchange’s insurance fund were used to cover liquidations of user positions on the Yearn Finance (YFI) token market.

The team said the fund, with a balance of $13.5 million, remains well funded; user funds were not affected and an investigation is underway.

In Antonio Juliano’s view, founder and CEO of dYdX, the losses arose from a “targeted attack” on the exchange, which involved “manipulating the entire YFI market.”

Jito launches governance token and announces an airdrop

The developers of the Solana-based liquid staking protocol Jito Network launched the native governance token JTO with a circulating supply of 1 billion tokens.

Jito is building infrastructure to reduce the negative impact of MEV bots on the main ecosystem. According to the company, the JitoMEV validator network controls 40% of the assets staked in Solana.

The launch of the native token will give “community members the ability to have a direct say in decisions and the direction of the network,” including setting fees for the staking pool, controlling treasury revenues, and DAO.

Initially, 115 million JITO were put into circulation: about 34% of tokens are allocated to community growth, 25% to ecosystem development, 24.5% to core participants, and 16% to investors.

Representatives of the project also announced that 10% of the coin’s issuance would be handed to the Jito community in recognition of their contribution to building the network and enabling governance from day one, effectively announcing an airdrop.

Also on ForkLog:

• DeFi platform Coinchange attracted $10 million.