Various DeFi protocols recorded a volatility of around 1 billion in 2020and briefly turned some of them into unicorns in the crypto room. Although the 2020 numbers are comparable to the number of projects that emerged as unicorns during the first boom in coin supply in 2017, the Gemini co-founder did Cameron Winklevosssaid that in September DeFi protocols have more stamina::
“Back then, money was raised for shitcoin whitepapers written in coffee shops. DeFi is already alive and well. Billions of dollars are being used for positive returns. This is not hypothetical vaporware, this is real.”
This platform pays users interest on blocked funds in exchange for loans. Aave was a DeFi project that reached a market capitalization of $ 1 billion in 2020. However, following news of a $ 6 million flash credit exploit, its value has been reduced to crypto unicorn status several times. The protocol’s own LEND token, which was migrated to a new AAVE token, after Aave obtained an electronic money institution license from the UK Financial Conduct Authority in August.
The DeFi Protocol unveiled its second version earlier this month, which supposedly Enhance flash loans and use collateral to reconcile loans.
YFI’s market cap hit $ 1 billion in August before hitting an all-time high on September 12th.. Although YFI is considered by many to be one of the top tokens in DeFi, has not regained its crypto unicorn status since September. At press time, the token’s market capitalization was approximately $ 750 million.
Interest in DeFi’s Yearn.finance platform has increased since the introduction of the native tokenYFI in July. The Performance Aggregation Platform offers liquidity through smart contracts and attracts liquidity providers.
Synthetix is a decentralized switch based on the Ethereum blockchain network through a series of smart contracts. However, Synthetix does not offer trading between crypto-assets such as tokens and stablecoins, but rather between “synthesizers” created by using another asset as collateral.
This DeFi platform exceeded a total of 1 billion in August. The Synthetix Network Token (SNX) made significant gains this year after hitting its all-time high of $ 7.74 on September 11. Up by more than 400% of its price in early 2020.
Harvest Finance had possibly one of the shortest spells as a crypto unicorn this year. The DeFi protocol grossed up to $ 1 billion in total banned value before a hacker could attack Harvest’s liquidity pools and steal $ 24 million. News of the exploit caused the total banned value of the log to decrease by nearly $ 500 million in a 24-hour period.
Work similar to Yearn, Harvest Finance is an automated performance management system that allows users to earn interest after provisioning certain crypto assets for loans.
Outside of DeFi projects, the blockchain analysis company Chainalysis, expanded rapidly in 2020, Overall valuation increased to more than $ 1 billion after a $ 100 million round of funding last month. The company develops investigative tools that enable businesses, governments and law enforcement agencies Monitor blockchain transactions and track suspicious illegal activity.
There were also other crypto unicorns that appeared in 2020. Bitcoin (BTC) rose to over $ 23,000 for the first time in history and Ether (ETH) topped $ 600 for the first time in two years. This year has been quite optimistic for large digital assets and new DeFi projects.
Filecoin was one of the fastest blockchain networks to gain and lose crypto unicorn status that year. After the network launched its mainnet on October 15, Filecoin’s FIL token rose 118% to a market cap of just over 1 billion before falling almost 80% in price. FIL’s market cap didn’t return to the same level until a month later and is currently at $ 1.3 billion.
Polkadot followed the same pattern as Filecoin, with its DOT token quickly growing to a market cap of more than $ 5 billion.. The blockchain network has been active as the authoritative “Proof of Authority” network since May, but launched its mainnet at the end of July. Polkadot does not directly compete with the Ethereum network and allows multiple blockchain networks to be present in its protocols.