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Total crypto market cap gains $400B as DeFi tokens lead the recovery

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Altcoins and DeFi sprang back to life on May 24 after a handful of decentralized finance tokens saw their prices increase by more than 60% as Bitcoin bulls pushed BTC price to the $38,000 level.

Some analysts are describing the move as a ‘dead cat bounce’ but despite those concerns, the bounce in prices seen across the market is likely a welcome sight for cryptocurrency investors who experienced last week’s historical capitulation event that saw nearly $1.3 trillion in value pulled from the total cryptocurrency market cap.

Daily cryptocurrency market performance. Source: Coin360

The biggest bounce-back performance among the top 200 coins was seen in the Ethereum (ETH) layer-two solution Polygon (MATIC), which has emerged as the leading L2 solution in the market in recent weeks.

Decentralized KR) surging 91% overnight to trade above $4,000 while Yearn.finance (finance (DeFi) tokens have also been at the front of the comeback, with Maker (MYFI) has rallied by 72% and now trades near the $48,000 level.

Other notable DeFi price gainers include Uniswap (UNI) and Aave (AAVE), which saw their token values increase by more than 50%, and a 62% price gain for the Binance Smart Chain-based BakeryToken (BAKE) which now trades above $3.30.

Total cryptocurrency market cap. Source: CoinMarketCap

Monday’s turnaround has added nearly $400 billion in value to the total cryptocurrency market capitalization which now stands at $1.615 trillion with a Bitcoin dominance rate currently of 44%.

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