—
The decentralized finance (DeFi) market is booming. In the last month, the total value locked in DeFi applications surged by over 200%, reaching close to $1 billion.
It is no surprise that decentralized finance has seen tremendous growth in 2020. This past month alone, the total value locked in DeFi applications surged to a staggering $967 million, up over 200% from just $323 million the month prior. This massive growth illustrates the enormous potential of decentralized finance and the promise it holds for the future.
The DeFi market is booming, and it is easy to see why. Decentralized finance offers a unique array of advantages over traditional finance, including transparency and security, an open financial protocol, autonomous functionality, and the potential for global access.
One of the factors driving DeFi’s growth is well-established platform with strong user bases, such as Maker and Compound. Maker is a smart contract platform that allows users to collateralize digital assets to create stablecoins and generate interest. Compound is a DeFi protocol that allows users to borrow, lend, and earn yields on digital assets with no intermediary. Both Maker and Compound are two of the most established and popular DeFi platforms, accounting for 25% of the total value locked in DeFi applications.
Another factor contributing to DeFi’s explosive growth is the introduction of Ethereum 2.0. Ethereum 2.0 is an upgraded version of Ethereum, which is the blockchain technology that powers DeFi applications. Ethereum 2.0 promises faster transaction speeds, lower fees, higher scalability and improved security. All of these improvements make the platform more attractive to users and investors, who are becoming increasingly aware of decentralized finance and its promises.
Finally, the increasing interest in DeFi is being bolstered by high-profile projects such as Yearn.finance and Uniswap. Yearn.finance is a yield farming project with a tokenomics model that allows users to stake their tokens and earn rewards. Uniswap is a decentralized exchange protocol that facilitates automated liquidity. Both Yearn.finance and Uniswap have become very popular in the DeFi space and have helped to drive even more interest in decentralized finance.
As the decentralized finance market continues to grow and mature, it is clear that the future of DeFi is incredibly promising. The sector has grown incredibly quickly in the past month and shows no signs of slowing down. The advantages of decentralized finance, combined with the introduction of new projects, has made DeFi attractive to investors and users across the world.
If you are interested in the the world of decentralized finance and want to learn more about its potential, be sure to follow us for more updates and analysis!