DeFi Growth is Out of Control, Pushing the Centralized Crypto World Behind
DeFi fire is getting bigger and bigger.
The sector has been growing like crazy throughout 2020 but it has been and the last two months has been simply explosive as the total value locked in the protocol went from just $1 billion to surpassing $4 billion.
And now in this month, it has been getting out of control as the TVL that was at $4.188 billion on August 1st has exceeded four big levels in this short span of time.
Currently, TVL on DeFi has reached a record $8.68 billion, as per DeFi Pulse.
And Aave (LEND) is currently dominating the DeFi space which along with Maker, Curve Finance, and Balancer have a market cap of more than $1 billion each. Popular Yearn Finance protocol is not far off followed by Synthetix, Compound, and Uniswap.
DeFi mania also has Binance and FTX offering DeFi futures with leverage to bet on the decentralization. Also, crypto broker Voyager Digital is getting on the DeFi by offering interest payouts on the likes of LINK, KNC, and BAT.
Amidst this, the liquidity on Uniswap more than doubled in the past 24 hours to over $650 million. The volume on the DEX has also risen to $250 million, which is already more than some of the popular centralized exchanges such as Kraken, KuCoin, Gemini, Binance.US, Bitfinex, and Poloniex, as per CoinGecko.
Also re: Uniswap. It’s getting much more efficient.
3-10x bc of liquidity and fomo isn’t really happening that I’m seeing. Stuff is taking much more time. Still good trade setups, but not a buy-everything market.
Probably good, but harder to do multiples. Unless I’m missing it.
— Ledger Status (@ledgerstatus) August 29, 2020
Uniswap is leading in DEX volume, with its 7-day volume reaching for $1.5 billion. Curve, Balance, 0x, and Kyber follow Uniswap but don't come even close to it.
DeFi space is very fast-paced, a lot more than crypto, which works to a great degree faster than the traditional finance.
Every other day, a new project enters the sector.
This time it is Sushi which was launched this week. SushiSwap is the “evolution” of Uniswap that has added community-oriented features, such as Sushi token, to improve the design of the protocol.
Already, the project has more than $357 million locked in it while its token SUSHI, much like any other DeFi token, is trading at $1.19, down 99.3% from its all-time high of $168.9 set just yesterday.
“SUSHI's liquidity pool is equivalent of approx x2 liquidity of Coinbase on ETHUSD pair. A food item that came online today, now has twice the liquidity of an 8 billion valuation regulation-compliant exchange on the 2nd biggest cryptocurrency,” noted analyst CL.
Another project launched no more than a dozen days before is Meme Protocol, which saw nearly $500,000 locked in just 24 hours. Over 89% of the Uniswap liquidity is locked in this protocol.
Still, according to some, this might be a humble beginning for the DeFi sector which could grow to $5 trillion.