February saw a steady run of applications in the blockchain sector despite declining macroeconomic conditions triggered by the conflict in Ukraine. DeFi recovered slowly, with some blockchains and cryptocurrencies showing a modest recovery.
Footprint Analytics data shows DeFi’s TVL at $207.2 billion, up 1.06% MoM, while BTC and ETH are up about 10% MoM. Most notably, Terra surpassed BNB Chain to become the No. 2 blockchain on the network with $18.83 billion, and the price of its token, LUNA, soared to $91, up 75.8% MoM.
Conversely, the NFT market is cooling in terms of the monthly trading volume. This report will analyze the overall situation of the crypto market in February according to data.
BTC, ETH Up About 10%, Liquidation Funds Down 95.53%
In February, the price of BTC hovered between $37,000 and $44,000 and the price of ETH between $2,600 and $3,200, neither of which had recovered from last November’s peak.
Here’s how the Russian invasion of Ukraine affected the price of BTC and ETH:
- On Feb. 24, Russia announced a “military operation”, causing BTC and ETH prices to fall along with global financial markets.
- In late February, cryptocurrencies were increasingly used to fund humanitarian and military aid as the Russia-Ukraine conflict and ensuing economic sanctions exposed the need for a decentralized ecosystem, and cryptocurrency prices clearly increased.
According to Footprint Analytics price trends, as of Feb. 28, the price of BTC was $43,286 and the price of ETH was $2,929.53, up about 10% sequentially. This also means that cryptocurrency prices are highly correlated with national policies and macroeconomic conditions.
The conflict between Russia and Ukraine is what triggered the liquidation of more than 80% of investors in the AAVE lending agreement on Feb. 24. However, compared to January, the amount liquidation in February fell from $425 million to $18.96 million, a decrease of 95.53%.
DeFi Slowly Recovering, Up 1.06% MoM
Following the trend of a full downturn in the DeFi market in January, February saw a slow recovery.
TVL recovered to $207.18 billion from $205.02 billion, ending the month with a slight 1.06% increase in TVL. Despite the modest increase in TVL, the overall size of the market remains above $200 billion.
Lido’s Single Currency Staking Model Helps Terra Overtake BNB Chain
Terra overtook BNB Chain for the second spot with $18.83 billion in lockup volume in eight months and pulled away from BNB Chain in February. Of course, Terra TVL’s growth is fueled by the Lido and Anchor protocols.
LUNA is Terra’s native token and, as of Feb. 28, the price of LUNA…
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