DeFi (decentralized finance) is gaining momentum. This dynamically developing segment of the cryptocurrency sphere has now closed for itself cryptocurrencies worth $8.24 billion. At the same time, each of the four key projects (Aave, Maker, Curve Finance, and Balancer) has become a “cryptocurrency unicorn,” as it attracted more than one billion dollars in cryptocurrencies from investors.
DeFi makes financial services more comfortable to use, which eventually attracts classic investors to decentralized finance as well. Weekly information appears that a particular DeFi project receives financial support from a venture capital fund, that is, from the world of traditional finance.
At the same time, Bitcoin is increasingly coming into the world of DeFi, where most projects are built on the Ethereum blockchain. Thus, according to analyst Zack Voell, currently 51,156 Bitcoins were tokenized on the basis of Ethereum.
For comparison, this amount of funds in Bitcoin is almost 50% of the amount of reserves in Bitcoin, which are available on the Bittrex Crypto Exchange. Similar figures for Gemini and Bitstamp are 53% and 44%.
If you want to read more about Decentralized Finance and why the number of DeFi projects increases, download for free our companion app. Available for both Android and iOS devices, Born2Invest mobile app brings you the latest happenings and trends in the crypto sector and the most important finance news in the world.
DeFi could benefit from the current crisis
Analysts pointed out that the heyday of DeFi came at a time when the world economy was experiencing financial turbulence as a result of the COVID-19 pandemic. This is a reminder that Bitcoin itself appeared during the previous crisis, which occurred in 2008. Nowadays, mankind’s need for digital financial communications has increased dramatically, and DeFi seems to be an increasingly adequate response to this demand.
At the same time, the number of bankruptcies of traditional financial structures in the world’s largest economy, the United States, reached its highest level in August for the last ten years. In addition, there are 1.7 billion people in the world who do not have access to a full range of financial services, which is often due to the lack of traditional financial institutions in a particular region of the world. In this situation, DeFi has great prospects, and there is a high probability that it will not become as transient as it once was with the boom of ICO.
The number of DeFi projects increases
The appearance of DeFi project tokens on crypto-exchanges becomes a new impetus for increasing investor interest in such cryptocurrencies. In addition, it slowed down the outflow of funds from them, as a result of which the attendance of such sites increased by an average of 13% in July. Decentralized crypto-exchange Uniswap, which also “grew” from DeFi, is in the lead in terms of growth rates.
To date, DeFi projects have accumulated $6.17 billion worth of cryptocurrencies. Along with the growth of the “pulse” of decentralized finance, more and more projects are emerging, and the share of the leader, MakerDAO, continues to decline, reaching 23.91%.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
BIPV Boom: By 2032, Building Integrated Photovoltaics Will Be Worth Over $143B
The next moves by the European Commission and the trend toward a real estate stock composed of Zero Emission Buildings...
French Fintech Company Qonto Launches SME Financing in Italy
Qonto is expanding its financial solutions for SMEs and professionals in Europe, launching the option for companies in Italy to...
Trusters and Leone Investments Finally Receive Approval Under EU Regulation
After almost a month under the new EU Regulation, two platforms, including the historic Trusters launched in 2018 and the...
Coinbase Wallet Has a New Feature: Send Crypto via Web Link
The exciting part is actually in the small print: This is because Coinbase covers the fees for transactions via stablecoin...
Sanofi Reaches an Agreement with Aqemia for $140 Million in Generative AI
Paris-based Aqemia will receive upfront and milestone payments under the deal that will be used to deepen R&D. In addition,...
Crypto1 week ago
First Condominium of Tokenized Houses Launched in Brazil
Crypto2 days ago
How the Rise in Bitcoin’s Price Affects the Planet’s Water Reserves
Fintech2 weeks ago
Private Credit and Tokenization: a Market Worth Over $1 Trillion
Biotech1 week ago
ALA Diagnostics Opens a New Laboratory in Madrid After Joining BeAble Capital