With an unstoppable surge in Bitcoin’s price, the DeFi also seems to grow steadily and quietly.
Bitcoin’s price is experiencing an invincible rise and is on its way to keep breaking new records the way it has for some time now. To our surprise, it isn’t the only project in the crypto space that is experiencing steady growth. The DeFi Pulse Stats indicate that investors have locked up a total value of $15 Billion in the decentralized finance (DeFi) industry. The industry started getting explosive attention and investments last year.
This is a huge milestone that indicates that DeFi is growing steadily and quietly as more and more investors put their trust in the industry. DeFi industry is all about non-custodial financial products that aim to reinvent financial instruments and services like lending and borrowing. The total value locked in ($15 Billion as of now) refers to the amount of money staked in their smart contracts.
The theme of crypto space could have been, “The exponential rise of DeFi”. Investors poured billions of dollars into DeFi projects which caused the industry to grow at an explosive rate in 2020. The lending protocols Maker, Aave, and Compound ascended as the biggest DeFi projects in the crypto space with the respective investments of $3 billion, $2.08 billion, and $2.07 billion locked in.
Maker, being the project with the largest market dominance, has a market cap that accounts for about 20% of the entire DeFi market. As of today, the price of the MKR, Maker’s token, was $785.06, according to CoinGecko. AAVE and COMP stood at $113.90 and $164.57, respectively.
Some still think of DeFi as a bubble because of its rapid growth. But even after its month-long decline, the average investor’s interest in DeFi projects continued to rise. The total value locked into the DeFi industry stood at about $700 million this time last year. The 2,077% increase in a year simply shows that the interest in the DeFi projects has kept on surging rapidly and quietly.