Decentralized Finance, or DeFi, ecosystem coins surged on Tuesday night as the global cryptocurrency market cap rose 2.11% to $2.08 trillion.
What Happened: The second-largest cryptocurrency, Ethereum (CRYPTO: ETH), rose 5.84% to $3,401.14 over 24 hours at press time and has gained 6.25% for the week.
Meanwhile, Bitcoin (CRYPTO: BTC) traded 0.33% lower over 24 hours at $46,828.92. The apex coin is down 2.2% for the week.
Dogecoin (CRYPTO: DOGE) was up 0.97% at $0.27. Over the last seven days, the meme coin is down 5.63%.
See Also: How To Buy Ethereum (ETH)
Polkadot (CRYPTO: DOT) shot up 16.66% to $30.60 over 24 hours making it among the top gainers at press time. DOT is up 19.88% over a seven-day period.
Aave (CRYPTO: AAVE) was up 9.10% at $383.06 over 24 hours and has risen 1.34% over the last seven days.
DeFi-oriented Solana (CRYPTO: SOL), which charted new highs continuously on Tuesday, took a breather and was down 4.04% to $107.11. SOL has shot up 50.73% for the week.
SOL touched an all-time high of $130.01 on Tuesday and was down 17.10% from those levels at press time.
Kusama (CRYPTO: KSM) was the top gainer on Tuesday as it rose 31.14% over 24 hours to $407.19. Over the last seven days, KSM gained 33.99%.
KSM, well-known for being DOT’s cousin as it was created by the same team, traded 31.35% and 24.27% higher against BTC and ETH respectively.
Why It Matters: The total value locked or TVL in DeFi has spiked 17.63% since Aug. 1 to $90.6 billion from $77.02 billion, as per DeFi Pulse data. AAVE’s dominance stood at 15.41%.
The DeFi party comes at a time when the sector is facing increased scrutiny from regulators, particularly the U.S. Securities and Exchange Commission.
On Monday, the SEC entered into an agreement with blockchain analytics firm AnChain.AI to help monitor the DeFi space.
Earlier in the month, SEC Chair Gary Gensler said DeFi projects have features that could be classified as an activity subject to regulation regardless of decentralization.
Meanwhile, analysts foresee short-term consolidation for the apex cryptocurrency above the 50-day moving average support at near the $40,000 level, reported CoinDesk.
“Once initial resistance is cleared, which we expect beyond the very near term, targeted resistance would become the all-time high near $69K-$70K,” said Katie Stockton, managing partner at Fairlead Strategies, as per CoinDesk.
Photo: By Jernej Furman on Flickr