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Ethereum Price Update: ETH worth of nearly $1 billion is locked in DeFi applications

  • ETH/USD has recovered to $240.00, but the vital resistance remains unbroken.
  • The amount of coins locked in DeFi applications is increasing.

The value of funds locked on smart contracts of decentralized finance applications (DeFi) reached nearly $1 billion after a sharp decrease in March amid global sell-off on the cryptocurrency market. 

ETH coins flow to DeFi applications

The number of funds on smart-contracts of DeFi applications bottomed at $538 million on March 18. However, the indicator performed a V-shaped reversal and recovered to 975 million by press time, according to DeFi Pulse stats.

MakerDAO retains the leading position with 54% of DeFi market share. It is followed by the platform of synthetic assets Synthetix and the cryptocurrency lending service Compound. The project Aave is also gaining popularity as it has recently added support for liquidity tokens Uniswap v1 that can be used as collateral.

The segment of decentralized exchanges (DEX) is also on the rise. According to the recent data, provided by Dune Analytics, the trading volumes on DEX increased by 15% in the past seven days.

Uniswap is the leader of the segment. It is closely followed by Bitcoin-swaps exchange dYdX and Kyber.

However, despite the sustainable growth, decentralized exchanges still lag far behind decentralized exchanges in terms of the trading volume. In particular, the daily turnover of Dune Analytics platforms ($27,2 million) is only 3,39% of the total trading volume produced by the platforms covered by the Bitwise rating ($802,5 million).

ETH/USD: Technical picture

Ethereum (ETH) is testing the resistance created by the upper boundary of the previous consolidation range at $240.00. The second digital coin has recovered from Tuesday's low at $224.47 and moved above 1-hour SMA100, which is a positive signal. The intraday RSI points to the North and supports the bullish scenario. Once $240.00 is sustainably broken, the recovery may be extended towards $250.00.

ETH/USD 1-hour chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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