TRON’s Justin Sun says Ethereum Layer 2 Arbitrum, Optimism have performed well in shrinking DeFi ecosystem – FXStreet


Ekta Mourya Ekta Mourya

The contagion from the Curve Finance exploit is spreading throughout the DeFi ecosystem. JP Morgan’s team of analysts led by Nikolaos Panigirtzoglou penned a report on the state of DeFi and said that the ecosystem is in a shrinking or stalling mode.
In response to the report, TRON’s founder Justin Sun argued that Ethereum Layer 2 projects Arbitrum (ARB), Optimism (OP) and the asset Tron (TRX) have beat the DeFi contagion, driving more assets and value to their ecosystem.
Also read: Bitcoin options worth $530 million set to expire on Friday without bear market end in sight
The DeFi ecosystem’s spreading contagion has market participants worried about the liquidity crisis and CRV token’s declining price. Amidst Curve Finance’s exploit and founder Michael Egorov’s attempts to shore up liquidity for the CRV token, JP Morgan’s team of analysts published a report on the state of DeFi.
In the report, the team of analysts led by Nikolaos Panigirtzoglou wrote:
While the decline in the CRV token price caused some contagion to DeFi platforms using CRV as collateral, the fallout has been contained so far. However, the overall DeFi ecosystem remains in shrinking or stalling mode.
TRON founder and crypto influencer, Justin Sun, commented on the report and highlighted that Tron has gained value over the past two weeks. Ethereum Layer 2 projects Arbitrum and Optimism have witnessed an increase in the Total Value of Assets Locked (TVL) on their platform against the odds created by DeFi’s fast-spreading crisis.
An on-chain analyst at crypto data intelligence firm Nansen, behind the Twitter handle @sandraaleow, revealed that as of Friday, Michael Egorov had raised $42.4 million in Over The Counter (OTC)/handshake deals, selling 106 million CRV tokens to DeFi influencers and market makers.
The analyst shared a detailed list of projects and their CRV purchase details in a recent tweet:
Addresses that purchased CRV tokens in OTC deals
Addresses that purchased CRV tokens in OTC deals
Egorov’s attempts to increase liquidity for the CRV token are met with enthusiasm in the DeFi community as several market makers and projects purchased CRV, supporting the asset that is ballast to several liquidity pools across the ecosystem.
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Bitcoin price is currentlytrading near a six week low. Post the US NFP data release for July, the asset sustained above the 29,000 level, showing likelihood of price recovery in August.
Bitcoin price is at a six-week low as BTC options contracts worth $530 million are set to expire on Friday. The maximum pain point or the price at which the contracts would incur the highest financial losses is $29,500. The notional value of the Bitcoin options contracts set to expire on August 4 is considerably lower than last week’s $2.09 billion.
The contagion from the Curve Finance exploit is spreading throughout the DeFi ecosystem. JP Morgan’s team of analysts led by Nikolaos Panigirtzoglou penned a report on the state of DeFi and said that the ecosystem is in a shrinking or stalling mode.
Arbitrum developers, Offchain Labs, rolled out a new dispute protocol for the Ethereum Layer 2 scaling solution. Previous releases by the developer have fueled a recovery in ARB price.
Bitcoin price is currentlytrading near a six week low. Post the US NFP data release for July, the asset sustained above the 29,000 level, showing likelihood of price recovery in August. 
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