MKR, COMP Lead DeFi Revival, Surge Over 43% and 83% Respectively

• The DeFi market experienced a turbulent journey in June.
• Altcoins, led by MakerDAO [MKR] and Compound Finance [COMP], have emerged as key players leading the recovery.
• MKR and COMP saw significant increases in value due to new developments.

DeFi Market Experiences Turbulence in June

The Decentralized Finance (DeFi) market experienced a rollercoaster journey since June with several projects facing tough times amid regulatory heat and challenges. With the SEC memo calling 68 tokens unregistered securities and Ripple’s [XRP] partial win over the U.S. SEC, focus was shifted from Bitcoin [BTC]. This triggered an interest in altcoin, DeFi tokens included.

Altcoins Lead Revival of DeFi Tokens

Interest in DeFi tokens spiked after a number of them put up tremendously poor performances; Glassnode revealed that the DeFi price index rallied by 56%. The increase in value would not have been possible without the input of MKR and COMP; both tokens experienced significant increases due to new developments made within their respective teams and communities.

MKR Smart Burn Engine Triggers Increase

MakerDAO deployed the MKR Smart Burn Engine contracts on-chain which is designed to allocate excess of its stablecoin DAI while increasing the on-chain liquidity of MKR over time. Due to this prospect, MKR surged by 43% within one week.

Compound Launches Superstate Project for 83% Increase

Compound also saw an increase when it launched Superstate on 28 June with its founder Robert Leshner revealing that it bridged the gap between real-world assets and digital currencies through tokenized derivatives; this led to an 83% hike of COMP’s price index within days following its launch.

SEC Lawsuit Affecting Recovery?

Despite these gains, Glassnote noted that bot trades on Uniswap increased but token prices have now tanked; whether or not this decline is because of renewed regulatory scrutiny remains uncertain at this point; however, it is clear that more steps need to be taken before investors can feel safe investing into crypto assets again amidst all these uncertainty surrounding enforcement action against some projects.