The DeFi sector is currently seeing a major resurgence, with a number of leading DeFi tokens having outperformed the broader cryptocurrency market in the last few days. This has resulted in an increase in the total value locked (TVL) across various DeFi protocols and platforms, which have hit new all-time highs and reflect investors’ renewed confidence in the sector.

At the forefront of these is Aave (AAVE), which is one of the most used lending and borrowing protocols in the DeFi sector. The AAVE token has also experienced a 25% surge in the past 24 hours with its price rising to $180 at the time of writing. This has been coupled with a sharp rise in trading volume which shows that there are more buyers in the market.

Among the DeFi projects, Uniswap (UNI) has been exceptional, given that it is the largest decentralized exchange in terms of trading volume. The UNI token has risen by more than 15% in the last 24 hours and is now worth $7. 50. The latest version of the platform, Uniswap v3, has been popular among users, which also led to the growth of the token’s demand.

Several factors have been identified to have contributed to the renewed interest in DeFi tokens, and these include; the general bullish trend in the cryptocurrency market, enhanced security in the protocols and user interfaces, as well as the integration of new and exciting features across the various platforms. Also, institutional investors’ interest in decentralized finance has also contributed to the increase in both token prices and TVL.

Among the most recent trends in the DeFi industry, it is possible to identify the emergence of cross-chain bridges and solutions for interconnection. These technologies enable users to transfer assets across different blockchains which means that there are new opportunities for yield farming and liquidity providing. Consequently, the tokens that enable cross-chain transfers, including THORChain’s RUNE and Ren’s REN, have also been rising in the past few days.

The aggregate capital locked in all DeFi projects has now risen above the $100 billion mark, which is a major achievement for the industry. This figure is more than ten times higher than the same period last year, which proves the development and popularity of decentralized finance solutions.

With the ongoing development of the DeFi sector, many analysts are sure that we have not even seen the tip of the iceberg. The combination of decentralized finance with the conventional financial systems also known as ‘TradFi’ is considered as the next big thing in the industry. There are already several projects that are trying to close the gap between these two worlds and hence the adoption and usage may increase in the coming months and years.

However, there are several things that one needs to know about DeFi and the first one is that the DeFi space is not without its risks. The sector has seen several high profile hacks and exploits in the past which have led to losses for some of the investors. Therefore, the investors and users should be cautious and do their due diligence before engaging in any DeFi protocols or investing in DeFi tokens.

Nonetheless, the general sentiment for the DeFi industry is still optimistic. As new products are created, security is enhanced, and more organizations get involved, more people think that decentralized finance will have a greater role in the future of the world’s financial system.