The total US dollar value set in decentralized financial protocols (DeFi) recently exceeded the $ 6 billion mark, according to on-chain data source DeFi Pulse.
Indeed, the figure is $ 6.32 billion, after almost six-fold since hitting the $ 1 billion mark just three months ago. The exponential growth observed this year is largely due to the introduction of “crop farming” * and the introduction of the interconnection protocol.
A recent investigation by the founder of the Encode Club Damir Bandalo noted that this figure is a little puffed up. Instead of $ 6.32 billion, Bandolo says that $ 3.5 billion is a best guess for the actual value set out in the top 15 DeFi protocols.
While the numbers shown by various data sources for the DeFi ecosystem may be a little inflated, This is something that happens in traditional finance as well. How he showed a twitter user.
The total value locked in DeFi logs can be a little difficult to calculate. because a dollar can generate its value many times its blocked value. For example, a user can lock Ether (ETH) on MakerDAO to create DAI, a decentralized USD-based stablecoin.
Then, That user can block the same DAI in a different protocol, and it doesn’t end there because different protocols allow different lending, lending, and replication practices.
DeFi is much more than a market application
Only about 3.85% of Ether and 0.18% of Bitcoin (BTC) are locked in DeFi. That said, there is still a lot of room for growth. Wrapped Bitcoin (wBTC) is the most popular way to mark Bitcoin on the Ethereum blockchain, and approximately 50% of its market cap of $ 274 million is compounded. RenBTC, a decentralized version of wBTC, is also becoming increasingly important as a gateway to DeFi.
Ether remains the most popular cryptocurrency in the DeFi ecosystem, accounting for 50% of the total blocked value while BTC only accounts for 10%. Stable coins make up 33% of the total blocked value and the rest is made up of other ERC-20 tokens like the Basic Attention Token (BAT), Augur (REP) and others.
Is there room to grow?
Regardless of the total USD value stored in the DeFi ecosystem, Of course there is plenty of room for growth. The locked-in value is likely to continue to rise as high-yield farming and other forms of lending gain attention.
While many believe that DeFi is the future of finance, The emerging sector still has significant security issues to solve and you have to do so while facing what appears to be an exciting market That reminds us of the ICO boom of 2018. this leads to poorly planned and rash projects like Yam Finance that started without the relevant ones Check your code.
* The DeFi ecosystem terms are in English