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Crypto Network Fees on the Rise After DeFi Sees Signs of Another Parabolic Action

DeFi is popping again.

After two months of downward price action, DeFi tokens are bouncing back. The market cap of DeFi governance tokens that bottomed on Nov. 4 at just under $5 billion has managed to now double, at $10.2 million, in aggregate market cap in less than two weeks.

Source: CoinMetrics

Total notional value deposited across DeFi also hit an all-time high at about $14 billion this past week.

The growth stagnated in October and early November, but an increase in DeFi activity can be seen again in the past two weeks that helped it push to new highs.

This is because DeFi tokens are rallying again after witnessing large declines in market value. Over the past week, SUSHI gained more than 100%, SWRVE 88%, CRV 52%, and Hegic 45%.

At the beginning of summer, DeFi tokens were red hot as various assets recorded over 300% gains in a few months. Now, this parabolic action seems to be returning after a cool-off period of two months.

The return of bulls has the network fees also returning to healthy levels. Ethereum topped the list, generating nearly $2 million in daily fees, as per TradeBlock.

On Uniswap, the fees are back above $1,000,000 per day after declining to under $500,000 per day last month. Much like Uniswap, SushiSwap is generating over $100,000 in fees after declining to lows as liquidity across its platform decreased.

The Q4 also saw a new platform, Playmarket, joining the list of fee-generating crypto platforms for the first time. The Ethereum based betting platform saw an uptick in fees after the US presidential election, which brought its presidential betting market to the mainstream.


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