Bitcoin's Value Surge Spurs Memecoin Uptick, Pushes On-Chain Locked Capital Over $100B
Summary:
The rise in Bitcoin's value is influencing the entire crypto industry and has pushed the on-chain locked capital past $100 billion on March 9, according to data from DefiLlama. Several centralized cryptocurrency exchanges experienced disruptions when Bitcoin exceeded $60,000 due to a surge in trading volume. Furthermore, the recent Bitcoin gains have led to a significant increase in memecoin value, with KORRA seeing a weekly surge of 577%.
The surging interest in Bitcoin is creating a ripple effect across the cryptocurrency sector, pushing the on-chain locked capital over the $100 billion threshold on March 9. Information from DefiLlama reveals that the worldwide total value locked (TVL) in decentralized finance protocols hit $100.1 billion, registering over $10 billion in trade volume in the last 24 hours. Despite the milestone, this falls short of the record-setting $189 billion from November 2021. Topping the list with $38.7 billion locked on-chain is the liquid staking protocol Lido, followed by the staking ecosystem EigenLayer and the AAVE protocol boasting a TVL of $11.5 billion.
DeFi TVL has surpassed the $100 billion benchmark for the first time in nearly two years. This upward trend seems to correlate with a resurgence of optimism in the cryptocurrency markets since the initiation of Bitcoin exchange-traded funds (ETFs) in January. Bitcoin ETFs led to a surge in institutional demand, driven by Bitcoin reaching new all-time highs, peaking at $70,000 on March 8. Data from BitMEX Research indicates that Bitcoin ETF assets have massively increased to $28 billion on the same day, excluding the Greyscale's fund, which was transformed into an ETF in January from an over-the-counter (OTC) product.
Online rumours on X (previously Twitter) suggest that OTC trading platforms are running out of Bitcoin, forcing them to resort to public exchanges to execute client orders. OTC platforms usually serve large-volume traders like institutional investors. Multiple centralized cryptocurrency exchanges, including Binance, Coinbase, Kraken, and Bybit, have faced disruptions after Bitcoin eclipsed $60,000, triggered by a surge in trade volume. To deal with the increase in demand, Crypto.com CEO Kris Marszalek announced that the exchange is employing an additional 480 customer service representatives.
Bitcoin's recent gains have set off a domino effect in the memecoin market. Data from Bitget Research shows a 577% weekly surge in memecoin KORRA, followed by Ribbit's (RIBBIT) 235% rise and PUG AI (PUGAI) skyrocketing by 232% over the last week. Well-known tokens like Shiba Inu (SHIB) and Pepe (PEPE) have seen significant upticks of 168% and 165%, respectively. Memecoins' market capitalization currently stands at $61 billion, according to Bitget data.
Published At
3/9/2024 8:18:55 PM
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