More than $170 billion has flowed back into the total market capitalization, giving crypto markets a nice morning boost.
Building on strong weekend gains, cryptocurrency markets are up Monday, with the entire market cap increasing by more than 11%. According to CoinGecko, that total has risen to $1.6 trillion, its highest level in three weeks.
Bitcoin has been the driving force behind the rally, gaining 13 percent on the day to reach a new high of $39,500. It has subsequently retreated slightly, but it is still trading at $38,850 as of this writing.
In just a few hours, this BTC move erased more than a month's worth of losses. Chinese FOMO, according to local crypto portal Wu Blockchain:
“Bitcoin rose by 12% in one hour, leading the increase. Because Chinese have just gotten up. It is obvious that the price of Bitcoin has started to rise after this rumor about Amazon spread in the Chinese community.”
Across the board, there are liquidations
CryptoQuant, an on-chain analytics tool, reported a large liquidation of short positions across key exchanges, with 3,280 BTC shorts liquidated in under three hours. The amount was roughly $111 million at the time of the huge spike in prices.
Bitcoin prices have already above the 50-day moving average and are aiming for resistance near $40,000, where prior highs were set on the way down. Although the 200-day moving average is still going downwards, a break above this could see prices move very swiftly higher.
Following weeks of pessimistic selling, DeFi-related tokens have received a big surge. Following two THORChain exploits this month, AMP has increased by 40%, SUSHI has increased by 19%, and RUNE has increased by 17%.
Polkastarter (POLS), Aave (AAVE), Terra (LUNA), Kava (KAVA), 1Inch (1INCH), and Ren (REN) are among the others gaining double digits. Ethereum is now worth $2,390, up 10% from its previous high.
DeFi TVL is closing up on $100 billion in revenue
Along with token pricing, the amount of collateral locked (TVL) into various DeFi protocols has increased. According to DappRadar, TVL gained 7% over the weekend, bringing its market capitalization to $98.4 billion. TVL has grown by 23% from last week and is now at its highest level since mid-June.
With $10.8 billion in TVL, Uniswap is the most valuable protocol, despite delisting a number of tokens recently.
