In recent weeks, the crypto space has had eyes only for Bitcoin (BTC), the value of which has only hit all-time highs. While cryptocurrency may or may not grab headlines, it is not the only one to perform exceptionally well. DeFi has indeed recorded impressive figures, as evidenced by the total value that is now blocked. This has just exceeded the $ 15 billion mark while the growth of the sector remains lower than that observed during the summer of 2020.
Maker, Aave and Compound at the top of DeFi projects
Summer tube in 2020, DeFi will have attracted thousands of investors long before Bitcoin in a move that many predicted an imminent end. Real revolution in the financial sector in terms of lending, it has swallowed billions of dollars to the point of setting a new record. This is the total blocked value or sum of money involved in the smart contracts of the various loan protocols. It is now $ 15 billion according to data released by DeFi Pulse.
It’s a huge performance in every way while most investors are just rushing into the Bitcoin market. There is therefore every reason to believe that despite a real slowdown in the growth of space, it continues to arouse public interest. Three major projects share nearly half of this total, namely Maker, Aave and Compound. These protocols hold $ 3 billion, $ 2.08 billion and $ 2.07 billion, respectively. Market leader, Maker therefore alone represents 20% of the market capitalization of the DeFi space.
Performance due to interest received by investors
The detractors of DeFi can always claim that space knew at a certain period growth of nearly $ 1 billion every week very far from current standards. However, another statistic deserves to be observed to assess the current performance of decentralized finance. During the same period last year, it held as a blocked amount a total of $ 689 million. Compared to current figures, this represents an increase of 2,077%.
To display such a shape, DeFi was able to count on the enormous interest which is paid to space investors. These interests come in particular from yield farming which allows investors to stake their cryptocurrencies. As a reminder, these fixed or variable interest rates had already fueled an unprecedented speculation responsible for the growth of DeFi.
End of 2020, DeFi Yield Protocol (DYP) announced its intention to embark on staking with several new features to counter the inflation that is rampant in this market. In particular, this is an anti-manipulation function of the price of its token by passing the rewards from the liquidity pool through ETH.