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taylorzed1

Meteorically rising DeFi reaches $ 12 billion capitalization

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Posted (edited)

 

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The Decentralized Finance (DeFi) ecosystem has just reached almost US $ 12 billion in total market capitalization value among all its currencies.

This number is important for different reasons, but mainly because it demonstrates meteoric growth in the sector, which many believe is the future of the financial market.

Between sales and purchases, the market capitalization dropped to $ 10.85 billion after touching $ 12 billion, however, the value is still very impressive, which will likely increase the popularity of the sector and the many altcoins that are linked to that industry.

When we talk about DeFi , another important number to be considered is the value locked in contracts, which is basically what makes the sector work. According to DeFi Pulse , which monitors such information, this figure is currently around US $ 4.71 billion.

The sector reached US $ 4 billion less than a week ago, and less than a month ago that figure was around $ 3 billion , a sign that more and more people are betting on the sector as an investment.

 

ChainLink and other altcoins are the main winners

 

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DeFi is formed by different currencies that are used to move contracts or are the source of energy for a network. Therefore, currencies linked to the sector are having a very positive result.

Projects like Compound, Synthetix and LEND have seen a steady increase in the last week, all showing double-digit valuations.

The main winner was ChainLink (LINK), which had a 25% increase over the weekend and reached its historic high of $ 14 for each LINK token. Even with the recent correction to the $ 13.50 house, the coin had one of the best performances of the year.

Only last week the currency appreciated 61.7%, in the last month it was 121.8%.

It is also worth mentioning that the vast majority of DeFi platforms work based on Ethereum, so the second largest cryptocurrency on the market owes a lot to the sector.

DeFi has been one of the main forces driving the current valuation of Ethereum, which has been doing well for weeks. This rising industry was responsible for 95% of the value created at Ethereum recently.

 

DeFi popularity on the rise, fear of bubble too

 

 

DeFi's popularity grows as much as its market value. More and more people are after the interest that different projects offer for those who lock values in smart contracts.

The so-called Yield Farming, which is the investment as a creditor in a decentralized platform, is being a very common option among holders to increase their assets.

But with the possibility of high profits, we also have high risks, sometimes higher than with traditional cryptocurrencies.

The possibility of a DeFI bubble is not a minor one, with many experts warning of a similar drop to Bitcoin in 2018. The sector is still too young to be sure how it will behave in the future, but it is always good to have a lot care to avoid the 2017/18 ICOs fiasco.

Edited by taylorzed1
correction
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Posted (edited)

DeFi is similar to the ICO craze and of course it won't end well. Eventually projects will keep failing one after another. These billions are not actual money but an inflated trap to lure investors. 

While some ICO's were promising DeFi is not at all. What they do is ask for crypto collateral and just offer yield farming which will come from new investors. This is mostly how Ponzi Schemes work.

The community was talking about Bitconnect but not about DeFi. Double standards here.

 

By the way, I'm not sure but I think you should be using standard fonts on your texts as the rest do.

Edited by BTC Future
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DeFi has been popular these days and we have seen a lot of developments in the DeFi ecosystem and also it has made a lot of people have trust in crypto currencies. Although there have being speculations that DeFi has made ethereum expensive. I still believe in it because it is a fast growing system and also highly valuable

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The current DeFi craze is so overwhelming, it is still far away from rounding up in my opinion; so don't be surprised, larger figures still coming up. Even big BTC investors seems to be so much in to the protocol; I believe now is just to follow the trend FOR A SHORT TERM (at least for me personally). Traders who have invested so much in it in last two to three months are actually smiling to the bank now. It is still isn't too late.

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I believe that this value will be much higher, as new currencies with the DeFi project continue to appear, they will probably be the ones that will become the cryptocurrencies of the future.

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Defi has been standard this existence and we obtain seen delivery of developments in the Defi environment and as well it has complete a batch of the frequent bear bank on in cryptocurrencies. though near comprise self speculations that Defi has ended ethereum expensive. I even now deem in it for the reason that it is a quick on the rise system and besides very well effective.

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