It may not seem like it today, with crypto markets tanking, but DeFi assets have been steadily recovering over the past month, according to Glassnode.

On July 31, on-chain analytics platform Glassnode published a report on the state of DeFi tokens amid this year’s regulatory issues.

“Regulatory conditions in 2023 have been a tug-of-war between positive and negative news, with altcoins and DeFi tokens being the most heavily impacted,” it stated.

Regulatory conditions in 2023 have been a tug-of-war between positive and negative news, with altcoins and #DeFi tokens being the most heavily impacted.

With #MKR and #COMP experiencing significant out-performance in recent weeks, we explore how we can extract information from… pic.twitter.com/zkIzfdYbRl

— glassnode (@glassnode) July 31, 2023

DeFi Token Recovery?

The report noted that several positive developments in the crypto asset industry have been beneficial to the DeFi sector.

“The uptick in DeFi token interest has sparked the interest of market makers, who have increased liquidity in the respective pools, indicating a positive outlook for trading and price activities around these tokens.”

The firm referenced its “DeFi index price,” which it claims has rallied 56% since the low set in mid-June.

Glassnode’s DeFi index consists of the top 8 such tokens by market cap. Furthermore, it has established an almost two-month-long uptrend relative to Ethereum, it added.