- The DeFi sector is booming, with the total value locked in related platforms increasing from USD 670 million to USD 1 billion this year so far
The decentralized finance (DeFi) sector, which is comprised of blockchain-based financial institutions, has seen dramatic growth since New Years Day. The total value locked into these platforms has reached USD 1 billion for the first time, following a 50% increase in roughly 1.5 months.
Further, The Block’s Open Finance Index, which is apparently a more comprehensive method for measuring the sector’s activity, is up 218% in the past 12 months, as compared to a rise of 297% in the total value locked.
Essentially, the industry is rapidly growing, which makes sense considering the economic utility of related services. One common service is crypto saving accounts, where users can earn interest simply by holding crypto. Another primary service is loans collateralized with crypto. Typically, a user will put their cryptocurrency up as collateral and receive a stablecoin loan in return. This allows users to access the value of their crypto while still having the option of buying the crypto back.
Indeed, well over 80% of the industry is comprised of lending platforms according to DeFi Pulse, with MakerDAO being the most dominant platform by far with a 60% market share. That being said, there are crypto derivatives exchanges in the sector as well, such as Synthetix which is in 2nd place with a market share of 13%, in addition to decentralized exchanges (DEX) and payment services.
BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Image Courtesy: Pixabay
The post Total Money Being Used on DeFi Platforms Exceeds $1 Billion for the First Time appeared first on BitcoinNews.com.
from BitcoinNews.com RSS Feed
via TOday BItcoin New
0 Comments:
Post a Comment