The decentralized finance (DeFi) ecosystem continues to struggle with ongoing market volatility and the aftermath of the collapse of the Terra ecosystem. Major DeFi protocols have shown signs of increased trading activity over the past week, with Uniswap trading above the $1 trillion mark.
Terra remains the focus of most discussions about blockchain and cryptocurrencies. World Economic Forum (WEF), analysts don’t think the output provided by Terra is sustainable.DeFi insurance deal to pay millions after Terra crash Ethereum Name Service (ENS) broke new records.
Price action for the top DeFi tokens by market cap has been mixed, with several tokens in the top 100 posting double-digit gains over the past week, while many others continue to lose money.
WEF 2022: Terra delivers unsustainable gains, while DeFi can support financial inclusion
Cointelegraph Editor-in-Chief Kristina Lucrezia Cornèr reported on the opening day of the Blockchain Hub Davos 2022 conference, hosting a DeFi-focused panel titled “Programmable Money Is Here — It’s Changing What We Know world”.
Coral Capital’s Horsman shared that the Terra crisis happened in part because “they basically provided unsustainable returns, and [that] There are venture capital firms that are channeling those gains to bootstrap an ecosystem. He pointed to his firm’s decision to withdraw funds from the project between November and December 2021 after their reserve modelling data predicted worrying calculations ahead.
InsurAce says it will pay claimants millions after Terra collapse
DeFi insurance protocol InsurAce said it has every right to reduce the claims period for those affected by the TerraUSD (UST) decoupling from 15 days to seven days — but added that it has processed nearly all 173 claims submitted and $11 million will be paid.
InsurAce (INSUR) is the third largest insurance provider in the United States Decentralized Finance (DeFi) protocol with a market cap of $15 million. On May 13, InsurAce made a splash when it announced a shortened claims window for insurance related to Anchor (ANC), Mirror (MIR), and the stablecoin UST after the crash Terra layer-1 blockchain.
Uniswap’s trading volume tops $1T — but it’s only used by 3.9 million addresses
Decentralized Exchange (DEX) Uniswap has surpassed $1 trillion in total transaction volume since its launch on Ethereum in late 2018.
However, this comes from a relatively small user base, which suggests a lot of potential growth ahead. According to Uniswap Labs, a major contributor to protocol and ecosystem development, after just over three years, the cumulative number of addresses on DEXs reached about 3.9 million this month.
Interest in Ethereum name services reaches ‘critical mass’
The Ethereum Name Service had its best month ever for new signups, account renewals, and revenue thanks to community awareness and low gas fees.
Metrics for Web3 Domain Services as of May, ENS lead developer Nick Johnson tweeted on Monday. He noted that the numbers are on track to smash existing records because they are already at an all-time high, “and we’re still a week away from May.”
DeFi Market Overview
Analysis data shows that the total value locked in DeFi also continued to see outflows in the past week, falling to $79 billion, a decrease of $5 billion from the past week.data from Cointelegraph Market Pro TradingView shows that the top 100 tokens by DeFi market cap have had a week filled with volatile price action and continued bearish pressure.
Most of the top 100 DeFi tokens by market cap trade in red, with a few exceptions. Avi (ghost) rose the most at 15%, followed by Loopring (LRC) at 14%. Tezos (XTZ) prices rose 11%, while Kava (KAVA) prices rose 10%.
Before you go!
Do Kown’s Terra Revival proposal finally approved. Kwon’s “Terra Ecosystem Restoration Plan” is to create new coins and distribute them To loss-making investors“Let’s call the existing Terra blockchain network ‘Terra Classic’ and the current Luna blockchain ‘Luna Classic’ and create a new Terra blockchain,” CEO Kwon said in a statement. tweeted on May 18.
Thank you for reading our roundup of the week’s most influential DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically growing space.