Cryptocurrency

News DeFi: Event highlights of the week

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During the last few weeks, the finance industry decentralized (DeFi) has been setting the pace of the crypto market. Therefore, we must keep ourselves abreast with the latest developments.

In this sense, today from CriptoTendencia we bring you the most relevant news of the week on DeFi.

Does the growth of DeFi is real?

One of the main questions that the crypto market and the experts have been doing for the last few weeks is: “does The growth of DeFi could be a bubble?”.

The question is usually so recurrent that from CriptoTendencia this week we make an analysis about it. In general, DeFi does not seem to save any similarity with what happened in 2017 with the ICOs. However, it is very difficult to determine a roof.

In this sense, one of the main news At this week is that DappRadar published a report, which stated that the metric most used to measure the industry, the total dollar value locked (TVL), may not reflect very well the reality.

Mainly, DappRadar explains that, if the price of a token is duplicated, the corresponding value in the TVL will, too. So, if the number of tokens actually wagered does not change, there would be a greater flow of money in the industry.

Therefore, the research of DappRadar argues that the real growth of DeFi could, in reality, be far less explosive than we think.

Thus, the research concludes that, while we saw an increase of about $ 800 million in the TVL of the three main tokens of MakerDAO, the real growth was no more than $ 200 million when you take into account the value adjusted for inflation.

The optimism in DeFi is becoming more and more noticeable

In particular, since CriptoTendencia informed this week that two characters of the industry did know his optimism about the DeFi: Justin Sun, CEO of TRON, and Changpeng Zhao, CEO of Binance.

For its part, in the framework of the Indonesia Blockchain Week 2020, Justin Sun said truthfully believe in the growth of the DeFi. His argument was based on the advantages offered by DeFi in comparison with the world of traditional finance.

You can borrow against, loan, you can repay the loan, what ever you want. All-in-seconds, which is impossible in a traditional system, “ he said.

Also, Changpeng Zhao said that DeFi is an innovative space and is part of the future. However, CZ said that the majority of the projects Defined will fail and “only a few will thrive.”

Therefore, as we reported from CriptoTendencia, CZ advised to the traders, and also during the Indonesia Blockchain Week, take care when “invest in tokens DeFi, as it is a new space and involves many risks.”

Growth of the sector in numbers by CoinMarketCap

In this framework of growth, CoinMarketCap offered this week during the Indonesia Blockchain Week updated figures on the state of the DeFi.

Graph where we observe the exponential growth of the DeFi. Source: CoinMarketCap
Graph where we observe the exponential growth of the DeFi. Source: CoinMarketCap

In particular, Carylyne Chan, CEO of CoinMarketCap, noted that in just three months the value of the industry DeFi has increased by 291%. In addition, this growth was led primarily by a group of platforms. Mainly by Chainlink, who dominates 45% of the value of the sector.

So, CoinMarketCap offered this week at the crypto market with a better vision for an industry that continues to grow and that increasingly draws more attention of the community.

Continue to Ethereum

Today, again the crypto market sees that Ethereum is about $ 400, and the main reason lies in Ethereum 2.0 and the growth of the DeFi that we have been observing.

As we reported in CriptoTendencia, the growth of the DeFi has been a key catalyst for the increase of the valuation of ETH. However, we do not take lightly the observed growth as we have mentioned above.

Price chart of Ethereum during the last 24 hours. Source: CoinMarketCap crypto
Price chart of Ethereum during the last 24 hours. Source: CoinMarketCap

At the time of writing ETH is valued at $ 389 and seems to be still toying with the idea of being close to the $ 400. The question is: What will? To answer it we have to be very attentive to the news on the DeFi and the updates of ETH 2.0.

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June is an experienced adviser in Blockchain with a successful track record of working in Public Relations and Growth planning. June has been an active advisor for cryptocurrency enthusiasts and a well known author of Blockchain. June has a passion for learning and is Internationally known for her work in crypto industry.

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