At the beginning of last quarter, the crypto market bounced back from losses in September, with the space’s total market cap hitting a whopping $ 2.32 trillion at the time of writing.
The DeFi space appeared to be thriving too, with Total Value Locked up 14% this week, topping $ 160 billion, and hitting $ 200 billion. While DeFi space appeared to be growing, some DeFi tokens like AAVE and Curve saw startling developments in terms of price and network growth.
In mid-August, the Avalanche Foundation announced that Avalanche rush, a $ 180 million liquidity mining incentive program to bring more applications and assets to its growing DeFi ecosystem. It started with two of the largest DeFi protocols after Total Value Locked (TVL), Aave and Curve. The same thing gave both networks a massive boost.
The incentive program appeared to have fueled the AVAX, AAVE, and Curve networks. This marked the first time the secondary protocol regarding TVL Aave has been ported to a chain that calls itself a scaling solution specifically for Ethereum (other than Polygon).
AAVE’s total TVL was up more than 20% in October itself, with the total value at the time of writing being $ 14.9 billion.
However, the real winner of the incentive program appeared to be Curve Finance, the automated market maker taking the top spot, according to TVL, turning AAVE around. The protocol’s TVL rose 20% to hit the $ 16 billion mark at $ 15.96 billion.
Additionally, Avalanche’s total TVL had risen to $ 5.19 billion on October 10, a number more than 15 times higher than on August 18 when Avalanche Rush was announced.
Recent momentum and the Avalanche Rush program have put Avalanche in sixth place in the TVL rankings, behind Fantom, which has $ 5.85 billion in TVL.
All the growth and no price gains?
Obviously, the incentives have worked their magic in gaining Defi-Protocols for deployment on other blockchains while fueling network and TVL growth for the protocols as well as the chain.
Normally, such an increase in TVL would have a positive impact on price, but this time it was different, especially for AAVE. With the rise in Bitcoin’s price, most of the altcoins consolidated or posted minor market-driven gains.
It was possible that Bitcoin’s growing market dominance, along with decent price gains, made the market skeptical about entering into trading in altcoins. Let alone mid-cap alts like AAVE, top alts like Cardano and Solana also seemed to be struggling.
Dwindling confidence and low trading volumes for AAVE were just a few reasons the Alt seemed to be struggling on the price front. However, the Curve DAO Token price had seen decent gains through October 9, but was down almost 7% at the time of writing.
CRV’s price gains could be attributed to the recent surge in the TVL, which put the protocol five places at the top. Still, the rise in TVL gave the two protocols the overall boost they needed.