DeFi protocols see inflows while meme token hype declines
DeFi protocols see inflows
The latest downturn in the cryptocurrency market has led to a shift in investor focus, with decentralized finance (DeFi) protocols seeing renewed interest while meme tokens lose momentum.
As speculative trading on platforms like Pump.fun cools, DeFi applications are emerging as the sector of choice for traders and liquidity providers seeking sustainable returns, according to the Cryptopolitan.
According to data from TokenTerminal, several DeFi protocols have seen a rise in fees and retained earnings over the past week, signaling increased user activity. Among the top performers, DeFi Saver played a key role in preventing liquidation cascades as Ethereum (ETH) briefly dropped below $2,400, putting leveraged positions at risk.
DeFi Resilience Amid Market Drawdown
While some lending protocols experienced capital outflows, others attracted fresh liquidity. Ondo Finance and Franklin Templeton, both involved in real-world asset (RWA) tokenization, recorded strong inflows. Ethena (ENA) also saw notable earnings growth, maintaining stability despite the recent Bybit exchange hack.
Market data from Kaito suggests that DeFi overtook meme tokens in mindshare on February 7 and has been steadily growing ever since. This shift mirrors a similar trend in June 2024, when DeFi briefly outpaced speculative assets during a volatile market period.
Despite market-wide losses, major DeFi tokens showed resilience. Maker (MKR) surged 42% over the past week, benefiting from its association with RWA tokenization. ThorChain (RUNE) also gained 31%, even as it was linked to fund movements from the Bybit hack.
With over $102 billion in total value locked, DeFi remains a pillar of crypto market infrastructure, offering liquidity solutions and stablecoin access amid shifting investor sentiment.
Meanwhile, Artificial intelligence, memecoins, and RWA led the way, showcasing innovation and market adaptation. Other segments, such as L1, DePIN, and DeFi, also contributed significantly to the industry’s development, despite delivering comparatively moderate returns.
