Institutional money seems to be flowing into the decentralized financial sector (DeFi)with Yearn Finance (YFI) being a major beneficiary.
According to cryptocurrency market data aggregator IntoTheBlock On-chain transactions of $ 100,000 or more increased 282% in the past week, including activity of nearly $ 134 million on November 10th alone.
According to the market analysis company Messari, YFI was the top performing DeFi asset last week, followed by yAxis with a profit of 78%, Loopring with 50% and Akropolis and Curve with 49% each. However, the change in DeFi is very new and only 11 of the 41 DeFi tokens tracked by Messari have risen in the last 30 days, while 22 have seen price increases in the last 12 months.
November 12th Messari identified that Polychain Capital emerged as that Major tenth YFI holders despite zero YFI tokens until October. Polychain currently controls 470 YFI, or 1.6% of the token offering.
Polychain collects several other premium DeFi tokens, including compound (COMP), manufacturer (MKR), filecoin (FIL), orchid (OXT) and 0x (ZRX).
While YFI was among the toughest markets for the DeFi sector to retreat from mid-September to early November, losing 80% of its value from approximately $ 43,300 on September 13th to $ 8,550 on November 6th, Yearn has rebounded over 95% in the past week and is currently trading at $ 16,600.
Last month, Crypto.com released the results of a survey of 411 “decision makers” representing traditional financial institutions familiar with DeFi.This indicates a significant investment by major companies in the sector.
Of those surveyed, 58% expressed concern that they “lose a competitive advantage” if they are not committed to DeFi products, and 61% represent companies “considering adopting the DeFi sector as a means of providing financial services . with intelligent contracts “. 35% of respondents said they are currently working with an existing DeFi platform or service.
However, the survey also found that 61% of respondents believe that the lack of oversight over the DeFi sector is a major challenge for the sector to grow.