A number of tokens that help blue-chip decentralized finance functions are bucking the bearish market pattern.
CurveDAO’s native governance token CRV has surged greater than 21% over the previous week as customers minted $114 million crvUSD, Curve Finance’s newly launched stablecoin backed by Bitcoin (BTC), Ethereum (ETH), and ETH liquid staking derivatives as collateral.
Elsewhere, governance tokens behind Maker (MKR), Frax Share (FXS) and Chainlink (LINK) posted weekly beneficial properties of between 8% and 9%.
In line with CoinGecko information, the broader DeFi credit score and lending sector witnessed progress, with most tokens buying and selling within the inexperienced over the previous seven days.
The optimistic motion can doubtless be attributed to the rise of real-world belongings (RWA) and liquid staking tokens as collateral in every of those functions.
RWAs are conventional monetary devices, similar to bonds or company bonds, which were tokenized.
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In line with information from DeFiLlama, complete deposits into RWA asset protocols have elevated throughout the board. RWA asset protocols are decentralized functions for tokenized RWAs.
One other current CoinGecko report exhibits that complete deposits into liquid staking protocols have grown 5,870% since January 2023, reaching $919.0 million on the finish of August.
Liquid staking derivatives (LSDs) consult with tokens similar to Lido’s sETH that present customers with a token illustration of their staked Ethereum place that may then be repurposed within the DeFi sector.
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DeFi lending protocols are more and more utilizing liquid staking derivatives so as to add as collateral.
For instance, Curve Finance’s new stablecoin crvUSD has about 53% of its collateral composed in LSDs similar to Lido’s sETH and Frax staked ETH (frxETH).
Crypto is teetering as bond yields hit 2007 highs
The broader crypto market has confronted challenges on account of threat sentiment in world markets.
Bitcoin noticed a 3.2% value drop, whereas Ethereum adopted go well with with a 2.6% loss for the week, primarily attributed to the rise in US Treasury yields that neared 2007 highs.
The annual yield on ten-year US Treasury bonds reached 4.5% – a degree final seen over the last monetary disaster of 2007.
The rise in authorities bond yields is the results of the market’s expectation of a brand new rate of interest enhance by the US Federal Reserve because of rising inflation.
Greater returns additionally decrease the chance price of investing in dangerous belongings like cryptocurrencies and shares, each of which have fallen since final week.
The whole crypto market cap fell 2.4% from $1.112 trillion to $1.084 trillion, shedding $27.6 billion over the week, in line with Coingecko.
Furthermore, declining buying and selling volumes available in the market and delays within the approval of a spot Bitcoin exchange-traded fund (ETF) within the US are additional contributing to the prevailing unfavourable sentiment.
The creator’s views and opinions are for informational functions solely and don’t represent monetary, funding or different recommendation.