The broader digital currency ecosystem has been well reflected by the volatility that has kept the combined crypto market capitalization below the $1 trillion benchmark for many weeks.

The drop experienced has been comprehensive, and all ecosystems in the crypto space, including the decentralized finance (DeFi), has recorded a similar valuation drop. The DeFi ecosystem has plunged from a peak of $165.22 billion on April 2 to $54.85 billion at the time of writing, with a drop larger than the drop in the market capitalization of about $3 trillion at the current value of $931 billion.

Despite the gloomy nature surrounding digital assets at the moment, DeFi’s current valuation came in with a significant 24-hour growth that was pegged at 29.26% at the time of writing, according to data from CoinMarketCap.

The growth of the DeFi sub-sector is quite unusual, as the combined market capitalization grew by 0.69% over the same period.

Coincidence in the growth of DeFi and Crypto Slump?

The current growth in the DeFi market can be labeled an intriguing coincidence as it comes at a time when industry participants are exploring how to invest in Ethereum as it now operates using the Proof-of-Stake (PoS) consensus model. ).

Among the major DeFi tokens that have added to the bottom line is the biggest gainer, Terra Classic (LUNC), which is up 69.85% to $0.0003375. The digital currency, linked to the startup of Terraform Labs, crashed in May, losing more than 99% of its value.

uniswap (UNI) is also outperforming the market with growth of 10.69% at $6.29. Reserve Rights and Maker are also among the top tokens that have added to the current bullish trend of the broader market.

Price and valuations grow as investors inject capital into the ecosystem, and with cash inflows into the DeFi world, it can be assumed that this injection of liquidity will soon trickle down to the broader crypto ecosystem. If this happens this week, it will soon lead to a change in the industry outlook, characterized by a flattening of volatility giving way to stability and eventually a good growth trend.

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