After a strong growth of DeFi TVL that happened in summer (Total Blocked value), the amount in US dollars continues to grow. A surge since the beginning of December led to the fact that TVL has almost doubled.
Crypto Sector that Generates a Staggering Income
DeFi Pulse lists about 60 DeFi projects from the areas of Lending, Dexes, Derivatives, Payments and Assets. On the other hand, Coin Gecko publishes the market capitalization of the top 100 DeFi coins, regardless of type. This allows you to get into the list of projects such as Chainlink, the leading Oracle project. DeFi’s market capitalization on Coin Gecko is currently just over $ 35 billion.
Ethereum itself is the platform on which almost all DeFi altcoins are based. Now that Ethereum 2.0 is launched, and the thorny issues of scaling and high gas fees are hopefully resolved soon, most projects are likely to remain on Ethereum.
Other blockchains such as Cardano, Polkadot and Binance Chain are looking to gain their share of the DeFi market, and Polkadot, for example, has its own fast-growing ecosystem of altcoins that run exclusively on the Polkadot blockchain.
Maker is the industry’s leading token, and according to DeFi Pulse, it currently has a dominance of just over 17%. It is a management token in the MakerDAO ecosystem, complementing the Dai token, which is a stable coin pegged to the US dollar.
Aave, another coin in the lending sector, is an open source, non-custodial lending protocol that simplifies decentralized lending and borrowing. TVL in Aave has recently grown to almost $ 3.5 billion.
Synthetix is the leading platform for DeFi derivatives. It allows users of the SNX token to create “Synths” representing real assets transferred to the Ethereum blockchain in the form of ERC-20 tokens, where they can be freely traded.
Uniswap is a leading DEX (decentralized exchange) and uses liquidity pools instead of order books, thereby eliminating “intermediaries”. Users of the platform can exchange any ERC-20 token for ETH or any other, if there is liquidity for the exchange. Users who provide liquidity are charged a fee for each transaction, depending on the size of their share in a particular pool.
Growth and regulation of DeFi
DappRadar suggests that the rise in the price of DeFi coin tokens has led to a “distorted view” of TVL. This may be true, but the fact that decentralized finance is crowding out everything that can be matched in the traditional financial space means that this sector is likely to attract more users and therefore grow strongly in the coming months.
There are still scenarios that can reverse this trend — deep regulation of the sector, some coins that will be declared as unregistered securities by the SEC, or even a complete ban on the use of these platforms.
Whatever happens, the DeFi space is currently a hive of financial entrepreneurship, and new ways to make a profit are evolving at breakneck speed.