The price of Bitcoin is on an unstoppable race to continue breaking new records – but it’s not the only crypto project that is performing well. Today, the total value stranded in the decentralized finance (DeFi) industry has reached $ 15 billion, according to statistics from DeFi Pulse.
DeFi – which exploded last year – refers to non-conservative financial products (mostly based on Ethereum) that want to revamp services like lending and borrowing. Total value locked in means how much money is put into play. in their smart contracts.
The industry has grown at a tremendous rate in 2020, with billions of dollars invested in its projects. The biggest projects in space right now are three loan protocols: Maker, Aave, and Compound. They have $ 3 billion, $ 2. 08 billion and $ 2. 07 billion locked up respectively.
Maker has a market dominance of almost 20% (a project’s percentage of market cap represents the entire DeFi market.) The price of the project’s token, MKR, was today $ 612. 46, according to CoinMarketCap. AAVE and COMP were $ 86. $ 50 and $ 141. 98, respectively.
Some have called the industry a bubble because it is growing so quickly. But despite the slowdown, interest in DeFi projects continues to increase.
At the same time last year, the amount of money stuck in the DeFi industry was $ 689 million. This is an increase of 2,077%. At one point, $ 1 billion a week was added to the total value stuck in the industry last year.
Interest in projects has increased because investors are making so much money. Huge returns could once be made from yield farming, a process that allows investors to lock in their crypto and earn either fixed or variable interest.
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