{"id":82462,"date":"2023-08-01T14:05:28","date_gmt":"2023-08-01T11:05:28","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=82462"},"modified":"2025-09-12T05:11:56","modified_gmt":"2025-09-12T02:11:56","slug":"analysts-record-a-spike-in-defi-token-trading","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/analysts-record-a-spike-in-defi-token-trading\/","title":{"rendered":"Analysts record a spike in DeFi token trading"},"content":{"rendered":"

In recent weeks DeFi tokens, led by MKR<\/a> and COMP<\/a>, have outpaced the market. Experts at Glassnodelinked<\/a> this to retail-trader activity.<\/p>\n

Analysts noted a conflicted news backdrop \u2014 from the SEC<\/span>‘s designation of 68 tokens as securities<\/a> to the hype<\/a> around bitcoin-ETFs<\/a> and Ripple’s partial victory<\/a>.<\/p>\n

During this period, the DeFi-asset index rose 56% from the June 11 low.<\/p>\n

\n
\"image-487\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

The drivers of the move were Maker (MKR) and Compound (COMP). Analysts attributed this to new fundamental principles of the projects.<\/p>\n

On 28 June, the CEO of the latter, Robert Leshner, announced his departure and the launch of an Ethereum fund<\/a> focused on investments in U.S. Treasury securities within the company Superstate.<\/p>\n

The structure will also invest in government-agency assets and other state-backed instruments. Against this backdrop, COMP rose by 83%.<\/p>\n

Around the same time, MakerDAO activated the Smart Burn Engine<\/a> \u2014 a program to repurchase MKR from the Uniswap<\/a> pool using excess DAI. As a result, the asset price over the week jumped 43%.<\/p>\n

\n
\"image-488\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

A shift in focus supported trading activity on the DEX<\/a> \u2014 the ratio of trading volume to the equivalent figure on centralized platforms jumped from 3.75% to 29.25%.<\/p>\n

In absolute terms, these changes did not show on the sector’s largest venue, Uniswap on the Ethereum network. The reason \u2014 a shift to Arbitrum<\/a>. A similar platform on the L2<\/a> solution captured 16.2% of weekly turnover. In March the figure was twice as high (32.8%).<\/p>\n

\n
\"image-489\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

Within Uniswap activity analysts recorded a rise in trading volumes attributable to traders to 28%, reflecting a period of heightened interest in DeFi tokens.<\/p>\n

The shares of sandwich<\/a> bots and arbitrage bots declined to 62% and 10%, respectively. For comparison, at the end of January the latter accounted for up to 79% and 30% of trading activity.<\/p>\n

\n
\"image-490\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

Since the announcement of MakerDAO’s buyback program, the largest concentration of liquidity for MKR on Uniswap v3 has been in the MKR\/WETH pool. MKR’s value-denominated volume during the period rose 61.7% to about $14.4 million, WETH by 726% to about $3.8 million.<\/p>\n

Analysts emphasised that ‘liquidity providers signal expectations of higher trading volumes for this pair’.<\/p>\n

\n
\"image-491\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

As a result of strong demand for MKR, the share of WETH in the pool by value rose from 4.4% to 21.2%.<\/p>\n

\n
\"image-492\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

Experts urged attention to MKR\u2013WETH liquidity outside the current range, where it concentrates. They noted that the metric rises with price ticks well above the MKR\/ETH rate (the chart below illustrates the situation).<\/p>\n

\n
\"image-493\"
Data: Glassnode.<\/figcaption><\/figure>\n<\/div>\n

Analysts said that, assuming liquidity providers are rational actors seeking profit, their liquidity movement may provide a market-like view of expected volatility and the token’s implied range.<\/p>\n

\n

\u201cBased on the assumption that liquidity providers are rational actors seeking profit, their liquidity movement may provide a market-like view of expected volatility and the token’s implied range\u201d,<\/em> explained the experts.<\/p>\n<\/blockquote>\n

In late July, an unknown attacker targeted Curve Finance’s stablecoin pools<\/a>. The exchange lost digital assets worth about $52 million.<\/p>\n

In the first half of 2023, the crypto industry faced 395 hacks<\/a>, losing about $479.4 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

In recent weeks DeFi tokens have outpaced the market. Experts at Glassnode linked this to retail-trader activity.<\/p>\n","protected":false},"author":1,"featured_media":82463,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1335,1093,1273,1100,1391],"class_list":["post-82462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-arbitrum-arb","tag-defi","tag-glassnode","tag-makerdao","tag-uniswap-uni"],"aioseo_notices":[],"amp_enabled":true,"views":"11","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=82462"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82462\/revisions"}],"predecessor-version":[{"id":82464,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/82462\/revisions\/82464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/82463"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=82462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=82462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=82462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}