DeFi Industry Capitalization Set New Record
The aggregate capitalization of the DeFi industry is growing at a rapid pace
If the indicator continues to grow at the same pace, it will soon exceed $ 5 billion
International consortium of news organizations developing transparency standards.
At the beginning of the week, the volume of funds in DeFiDecentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More was $ 3 billion. Now this amount has grown to $ 4 billion, while the figure continues grow exponentially.
The DeFi acronym hides non-custodial financial blockchain projects. In particular, they offer cryptocurrency lending services as well as decentralized stablecoins. Most of them live on the Ethereum blockchain and have a strong impact on network congestion and transaction fees. At the same time, the amount of blocked funds is how much money goes through the smart contracts of these projects..
Earlier, the editorial staff of BeInCrypto wrote that the hype around DeFi protocols does not benefit Ethereum, however, the subsequent correction in this segment may provoke a rapid rise in the bitcoin rate.
This industry is growing at an incredibly fast pace. Back on Tuesday, according to DeFi Pulse, the amount of funds blocked in DeFi applications was $ 3 billion. But by Friday, just three days later, it had grown by a third and came close to $ 4 billion..
Moreover, the growth rate continues to increase exponentially. So, on July 3, DeFi had only 2 billion dollars, two weeks later the amount reached 3 billion. And then in less than a week it reached 4 billion. This dynamics reflects the rapid acceleration and makes experts suspect the formation of a dangerous speculative bubble in the market, akin to an ICO bubble.
The three largest DeFi protocols are Compound, Aave, and Maker (their rankings change daily). They all offer lending services, although Maker also operates the Dai decentralized stablecoin..
It is currently the largest DeFi project by market cap. According to DeFi Pulse, more than $ 800 million has been blocked in his contracts. Another 600 million are hardwired into Compound smart contracts and the same amount in Aave.
It all started with Compound
DeFi started to skyrocket in popularity last month, prompted by the release of the Compound governance token. It is a project based on the Ethereum blockchain where users can borrow and lend in cryptocurrency. After launch, it began to quickly gain popularity, and the price of the corresponding token rose by more than 60%.
Compound is trading at $ 156.17 at the time of writing. According to CoinMarketCap, the coin has hardly changed in price over the course of a day. Maker is down 2.5% to $ 502.14 and Aave sells at $ 0.306489, down 7.1% on a daily basis.
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