DeFi Pulse Index Rises by 13% As Underlying Tokens Rally by Almost 30%

Key Insights:

• The DeFi Pulse Index inclined by 28% in the last three days.
• The total Value Locked in the DeFi market has been reduced to just $74 billion.
• Underlying tokens include Uniswap, AAVE, and Loopring, among others.

The growth of the Decentralized Finance (DeFi) market is essential to the growth of crypto if it intends to make web3 mainstream. But the recent market crash dwindled the faith investors had in DeFi protocols resulting in losses far worse than the recent crash.

The DeFi Pulse Index

Also known as DPI, this Index is a digital asset index designed to track tokens’ performance within the DeFi industry. By evaluating the value of each DeFi token, the DPI bases its Index on either positive or negative.

The protocols that are tracked by the Index are not selected randomly, as only the ones that have major use cases and consistent development and maintenance make it to the Index.

During the recent market crash of June, the Index depreciated by 45.31% and closed at a low of $58.3. Since then, the broader market recovery triggered a rise for the Index as well, resulting in the 28.06% rally bringing the value of DPI to $75.6.

While the DPI has recovered slightly, the DeFi market’s total value recovered by $3 billion as well. However, an increase as minute as this will bring no significant change as the market lost more than $160 billion in the span of 2 months. 

This is because as soon as the crypto market was hit with bearishness, it broke the confidence investors had in DeFi protocols as well.

Add to this the depegging of TerraUSD and the fall of the second biggest DeFi chain in the world, Terra, and you get the decline observed.

The Underlying Tokens

Currently, the DeFi Pulse Index tracks 14 protocols’ performances which affect the value of DPI. These include Uniswap, AAVE, Maker, Loopring, Synthetix, Compound, and Yearn.Finance, SushiSwap, KNC, REN, Balancer, Badger, FARM, and Rari Capital. 

Of these 14 tokens in the last three days, Synthetix has outperformed every major altcoin to become the leader of the rally with a 109% rise in the span of 24 hours.

In doing so, it recovered the entire crash it witnessed this month and is currently trading at $3.05.