Report: The total lock-up value of DeFi agreement has increased by US $10 billion since the beginning of the year

According to a report released by Cointelgraph, as the price of Bitcoin began to rise at the beginning of 2023, some counterfeit coins experienced more than 100% monthly growth, and the total lock-in value (TVL) of the DeFi agreement increased by US $10 billion year-to-date. Analysts said that this was caused by the extreme dominance of negative sentiment and the oversaturation of short positions at the end of 2022. However, the agreement based on Solana Friktion still announced that it would stop deposits due to “the difficult market of DeFi in the next few months”, which indicates that there may be further withdrawal in the near future.

Interpretation of this information:

The report by Cointelegraph highlights that some fake coins experienced over 100% monthly growth as the price of Bitcoin surged at the start of 2023. Additionally, the total lock-in value of the DeFi agreement increased by $10 billion for the year. Analysts attribute this growth to the overwhelming negative sentiment around the market and oversaturation of short positions in 2022. Despite this growth, DeFi agreement based on Solana Friction decided to cease deposits due to the “tough DeFi market in the coming months,” indicating that there may be more withdrawals in the near future.

The recent surge in the price of Bitcoin has led to a growth in some counterfeit coins. Counterfeit coins are not new in the cryptocurrency market, but they are becoming more popular as investors look for alternative ways to invest in digital currency. The surge in growth may be attributed to investors taking advantage of the bullish market to add more to their portfolios.

The total lock-in value of the DeFi agreement has also seen considerable growth. DeFi refers to decentralized finance, which provides an alternative to traditional financial systems. The growth in lock-in value highlights investor’s confidence in DeFi as a viable investment option. However, this growth is not without risk, as the market can become uncertain, leading to withdrawals from investors.

The report by Cointelegraph notes that the growth in counterfeit coins and DeFi investments is due to the extreme dominance of negative market sentiment and oversaturation of short positions in 2022. The negativity and oversaturation led investors to explore alternative investments, leading to growth in counterfeit coins and DeFi investment.

Despite the growth in the DeFi market, the announcement by the Solana Friction-based agreement to cease deposits in the near future is a cause for concern. This announcement indicates that there may be more withdrawals in the near future. The withdrawals could lead to a decline in the value of the DeFi agreement, highlighting the risk associated with DeFi investments.