# DeFi Market Shows Signs of Recovery: Liquidity and Trading Volume Surge

In the second week of June (June 8-15), the decentralized finance (DeFi) market exhibited a robust recovery in both liquidity and trading volume, with a noticeable improvement in investor sentiment towards risk assets overall. According to DeFiLlama, the total value locked (TVL) surged 4.49% from the previous week, reaching $116.68 billion, marking a significant turnaround.

# Derivatives and Decentralized Exchanges on the Rise

The derivatives sector saw a remarkable increase in weekly trading volume, hitting $95.32 billion, a 33.43% jump. Meanwhile, decentralized exchange (DEX) trading volume also climbed 16.11% to $96.66 billion, indicating a clear influx of capital into the decentralized ecosystem. The trading volume proportion of DEXs compared to centralized exchanges (CEXs) accounted for 34.74%, showing a slight increase. This trend suggests that users are gradually migrating back to decentralized platforms, coinciding with the recovery of on-chain activities.

# PancakeSwap Dominates DEX Market

In the DEX market, PancakeSwap emerged as the clear leader, with weekly trading volume surpassing $82.7 billion. According to Token Terminal, PancakeSwap has been on an upward trajectory since April and has now substantially outpaced Uniswap ($25.8 billion) and Raydium ($6.3 billion), solidifying its dominance in the DEX sector.

While Uniswap maintained stable trading volume, its market share decreased. Raydium, which showed strength early in the year, has since lost ground. Smaller DEXs like Meteora ($1.9 billion), Orca ($3.8 billion), and PumpFunn ($1.1 billion) demonstrated relatively steady activity, although the gap with PancakeSwap remains significant.

# TVL Growth: Hyperliquid and Base Lead the Charge

Examining chain-specific TVL figures (per DeFiLlama), Ethereum (ETH) maintained its top position with $64.52 billion, followed by Solana (SOL) at $8.82 billion, Bitcoin (BTC) at $6.58 billion, Binance Smart Chain (BSC) at $6.07 billion, and Tron (TRX) at $4.96 billion. Despite minimal structural changes amongst the leading chains, some up-and-coming chains displayed notable growth.

Hyperliquid (Hyperliquid L1) surged 18.34% from the previous week, surpassing $1.875 billion in TVL. On a monthly basis, it recorded a staggering 70.58% increase, indicating significant momentum in its early expansion phase. Base also showed a monthly rise of 11.37%, marking the fastest growth among layer 2 solutions.

# Increasing Competition Among Chains Amid PancakeSwap’s Dominance

Overall, the second week of June highlighted PancakeSwap’s strengthened lead and an intensifying competitive landscape among chains. The reimagining of market share in the DEX sector and the buoyant derivatives trading activity underpin the overall recovery in DeFi. If the newly injected liquidity persists, there is potential for up-and-coming chains to expand their market share further.

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By adhering to Wall Street style guidelines, this article aims to provide a clear, professional, and in-depth analysis of the current state of the DeFi market for a financially literate audience.